Executive Guide
The General Counsel Litigation Finance Playbook
For general counsel, litigation funding is a legal-operations tool: it lets the department pursue meritorious claims without consuming the litigation budget, while preserving counsel independence and adding an external underwriting check on which matters deserve to proceed.
Executive Summary
In-house teams manage a portfolio: defensive matters they must fight, and affirmative claims they could monetise. The affirmative side is chronically underworked because budget and bandwidth go to defence.
Funding changes the equation for affirmative recovery: costs move off the legal budget, an independent underwriter pressure-tests the merits, and integrated management supplies the bandwidth the team does not have.
Introducing funding into a legal department
- 1
Triage the portfolio
Separate defensive matters from affirmative claims; value and grade the affirmative side.
- 2
Select candidates
High-value, well-documented claims with solvent counterparties and clean limitation.
- 3
Run the assessment
Independent eligibility assessment produces a recoverability view for each candidate.
- 4
Set governance
Approval workflow, privilege handling, reporting cadence and settlement authority, agreed upfront.
- 5
Execute and report
Funded matters run through a managed process; the GC reports outcomes in business terms.
Affirmative claims: internal-only vs funded
| Internal pursuit | Funded pursuit | |
|---|---|---|
| Budget impact | Competes with defence work | Off-budget for funded matters |
| Merits check | Internal view | Independent underwriting |
| Bandwidth | Existing team | Managed process adds capacity |
| Counsel independence | Preserved | Preserved, advocates remain independent |
GC readiness checklist
- Affirmative-claim register with values and limitation dates
- Privilege and confidentiality protocol for sharing case material in diligence
- Defined settlement authority and decision rights
- Board or management mandate for monetising claims
- Reporting format that translates legal progress into business terms
Frequently asked questions
Does funding compromise privilege? ▾
Diligence is structured to respect privilege, with appropriate confidentiality protections. Your privilege protocol should be agreed before material is shared.
Who decides on settlement? ▾
The claimant. Funding agreements set out consultation rights, but control of legal strategy and settlement remains with the claimant and counsel.
How do we choose which matters to put forward? ▾
Start with high-value, well-documented claims against solvent counterparties, inside limitation, where internal bandwidth is the binding constraint.
How is outside counsel affected? ▾
Advocates remain independent and are paid brief fees in the ordinary course, Indian professional conduct rules do not permit advocate contingency fees, and the model does not rely on them.
Related Guides
Assess your claim's recoverability
A free, structured, 5-step assessment of whether your claim may qualify for funding. Preliminary indication only, subject to due diligence.
Check Your Claim Eligibility