Litigation Funding for Individuals: What’s Possible and What Isn’t

Sometimes, the irony of the legal system is almost unbearable. Your lawyer says the case is strong. The law is clear. And yet a legitimate claim remains untouched because the opposing party is playing for time, because a large corporation already has its lawyers on an annual retainer, and because the claimant simply has no idea how to shoulder €15,000 in potential litigation costs. Litigation funding for individuals can offer an alternative way forward.

In the public perception, litigation funding is still seen almost exclusively as a tool for major players: corporations pursuing antitrust damages or funds financing multimillion-euro international arbitration proceedings. Few people realize that individuals can benefit from litigation funding as well and that lack of awareness can cost claimants real money.

At a Glance

• Litigation funding is available to individuals, not just corporations or law firms.
• The key criteria are the likelihood of success, the defendant’s ability to pay, and a claim value typically starting at around €10,000 to €25,000.
• Common cases for individual claimants include inheritance disputes, investment losses, medical malpractice claims, and high-value consumer claims.
• If the case is successful, the claimant typically pays the funder 20% to 40% of the amount recovered; if the case is lost, the claimant pays nothing.
• AEQUIFIN offers a dedicated submission process for individuals and determines funding terms through an open bidding process involving multiple funders.

1. Is Litigation Funding Even Available to Individuals?

The short answer: Yes.

The slightly longer answer: It depends on the individual case.

Litigation funding works according to a simple economic principle. An external funder covers the full costs of the proceedings. This includes lawyers, court fees, expert witnesses and, if the case is lost, the opposing party’s costs as well. If the claimant wins, the funder receives an agreed share of the proceeds. If the claimant loses, the funder bears the financial loss alone.

The model does not distinguish based on who brings the claim. What matters is the quality of the claim, not the claimant’s legal status.

In practice, the market has long focused on large scale proceedings. Traditional litigation funders such as FORIS or LEGIAL typically require minimum claim values of €100,000, simply because due diligence and administrative costs can erode the margins on smaller cases. For many individuals, this meant one thing for years:

Bad luck.

Newer marketplace models have changed this dynamic. Because platforms such as AEQUIFIN allow multiple funders to finance a case together, claims that would be too small for a single institutional investor can still be funded. As a result, the barrier to entry for individual claimants is lower as well.

2. Which Cases Are Eligible for Litigation Funding for Individuals?

Not every dispute is suitable for litigation funding. However, the range of eligible cases is considerably broader than many people assume. Typical case categories for individual claimants include:

• Inheritance disputes. Forced heirship claims, will contests or disputes between co heirs often have the right combination of a substantial claim value, a clear legal basis and an opposing party with sufficient assets to pay if the case succeeds.
• Investment losses. Banks offering unsuitable or defective investment products, fund issuers that failed to disclose material risks or financial advisers with demonstrable breaches of duty. The losses involved are often substantial, while the opposing party is generally able to pay.
• Medical malpractice. Legally complex, but an established area for litigation funding. Expert witness costs alone can exceed what an average household can comfortably afford. A clearly documented medical error and quantifiable damages are essential.
• High value consumer claims. These may include expensive products with undisclosed defects, construction disputes or claims against debtors with sufficient assets, provided the amount in dispute is high enough.

It is equally important to understand which cases are unlikely to qualify. Disputes involving a low claim value, an insolvent opposing party or an unclear legal position are generally unsuitable. Litigation funding is not a tool of last resort. It works where a claim is well founded, but the financial risk of pursuing it stands in the way.

What Requirements Must Be Met?

1. A likelihood of success above 50 percent. A business model in which every second case is lost is not sustainable. The internal assessment is therefore rigorous. Having an experienced lawyer who can provide a clear assessment of the case is not mandatory, but it can be a significant advantage.
2. An opposing party that can pay. A judgment against a debtor with no assets is worth little in practice. When the opposing party is a company, bank or insurance provider, this is generally less of a concern. When the opposing party is an individual, it depends on the circumstances of the case.
3. A sufficient claim value. Funding is rarely viable for claims below €10,000. From around €25,000, cases become more attractive, and from €50,000, a detailed assessment becomes increasingly realistic. The AEQUIFIN Litigation Cost Calculator can help estimate what proceedings may cost in your case and whether litigation funding makes economic sense.
4. A monetizable claim. Claims that pursue purely nonfinancial objectives are generally unsuitable. The claim must be capable of being expressed as a specific monetary amount.

A complete overview of the relevant criteria can be found in the Litigation Funding Requirements article

What Do You Give Up If You Win?

If the case is lost, the claimant pays nothing. This is not a marketing claim. It is the structural foundation of the litigation funding model. The funder bears the entire financial loss.

If the case is successful, the claimant gives up a share of the amount recovered. With traditional direct funders, this share typically ranges from 20 to 40 percent and is often structured according to the value of the claim. A claimant who recovers €300,000 and gives up 30 percent still walks away with €210,000 and without funding, they might have recovered nothing at all.

At AEQUIFIN, this percentage is not determined by an internal pricing table. Instead, it is established through an open bidding process. Multiple sponsors submit offers and compete to provide the most favorable terms for the claimant. The quota balancing process is designed to produce market based pricing.

3. Advantages and Disadvantages of Litigation Funding for Individuals in Plain Terms

Litigation funding offers some significant advantages. Those who cannot afford to hire a lawyer with their own funds can gain access to fully financed legal proceedings.

The specific advantages include:

• The entire financial risk of litigation is covered, including lawyers, court fees, expert witnesses and the opposing party’s costs
• Your own liquidity remains untouched
• Professional support throughout the proceedings is included
• If the case is lost, there is no obligation to contribute additional funds

However, there are also disadvantages that should be clearly acknowledged:

• A portion of the amount recovered goes to the funder. This is the price of transferring the financial risk
• With traditional direct funders, the funder often has a say in litigation strategy, particularly when deciding whether to accept a settlement. This can create conflicts of interest if the claimant wants to continue fighting while the funder is focused on the financial calculation

With a marketplace model, this dynamic is less pronounced because no single investor exercises dominant control. The Litigation Funding Options article provides an overview of the different funding options.

How Litigation Funding for Individuals Works at AEQUIFIN

Getting started is straightforward. Through the case submission process, you can submit your case in a structured format. The platform collects the relevant information digitally, including the area of law, claim value, current stage of proceedings and the parties involved. AEQUIFIN conducts an initial review before the case proceeds through the platform and can be presented to suitable sponsors. Funding terms are determined through the bidding and quota balancing process, allowing market based conditions to emerge.

The complete process is explained on the How It Works page. Current cases available on the platform can be viewed in the Case Overview.