Does the Legal Funding industry promote frivolous litigation?
Not at all. The non-recourse Legal Funding industry does not promote frivolous litigation and actually discourages it. If an ALFA member encounters a frivolous case during their evaluation, they will not fund it. Besides being against public policy, frivolous cases also make very bad investments, since the overwhelming majority of them have low probability of success. By helping victims with compelling claims, ALFA Members actually discourage frivolous litigation by denying frivolous cases financial support. By facilitating a more direct, transparent and rational distribution of capital to plaintiffs, we enable a more balanced and efficient legal system, which is consistent with the realities and demands of a modern free market economy.
