Law firm funding is secured by the law firm’s potential fee income in three or more of the cases. It serves to cover a portion of the operating expenses in the cases, essentially converting the “full” contingency legal fee matters into “hybrid” matters in which the law firm earns a portion of the capital it would earn from the cases if it were handling them on an hourly fee basis.
Since our law firm financing is non-recourse capital, law firms retain the portfolio financing even if the portfolio of cases ultimately do not result in successful outcomes.
When contingency legal fees are collected from one or more of the cases, law firms pay a return to the litigation funder Omni Bridgeway, with the litigation expenses depending on the terms of the portfolio financing agreement.
This approach allows law firms to avail themselves of opportunities to earn more than they would earn in hourly-fee matters while lessening the risk of taking multiple cases on contingency.