Empowering Justice with Litigation Funding in Malaysia

Step 1: Case Assessment and Due Diligence

• Objective: Evaluate the merits and risks of the case to determine its viability for funding.

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• Process:

  • Case Details Collection: The claimant or law firm provides relevant documentation, including pleadings, evidence, legal opinions, and cost estimates.

  • Legal Merits Analysis: Review the strength of the claim, jurisdictional considerations, and legal precedents.

  • Risk and ROI Assessment: Analyze the financial value of the claim, probability of success, and potential recovery amount.

  • Decision Point: Cases with high merit and strong recovery potential proceed to the next step.​

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Step 2: Funding Agreement and Structuring

• Objective: Formalize the terms of funding and set clear expectations for all parties.

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• Process:

  • Negotiation: Agree on the funding amount, repayment terms, and the funder’s share of the recovery (e.g., percentage of settlement or damages awarded).

  • Drafting the Agreement: Create a legally binding funding agreement outlining:

    • Scope of financing (e.g., legal fees, court costs, expert witness fees).

    • Terms of repayment (success-based).

    • Confidentiality and disclosure requirements.

  • Execution: Both parties sign the agreement, and the funds are disbursed to cover the litigation costs.

Step 3: Ongoing Monitoring and Case Management

• Objective: Provide financial and strategic support while monitoring case progress.

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• Process:

  • Collaboration with Legal Teams: Maintain communication with the claimant's lawyers to stay informed on developments.

  • Periodic Reviews: Evaluate the progress of the litigation, including motions, hearings, and negotiations.

  • Financial Oversight: Ensure proper allocation and utilization of funds for approved expenses.

  • Strategic Input: Offer insights or additional resources (if needed) to enhance case outcomes.

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Step 4: Resolution and Settlement Process

• Objective: Conclude the funding arrangement upon case resolution and process financial settlements.

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• Process:

  • Case Outcome: Upon winning or settling the case, the recovery amount is disbursed to the claimant.

  • Repayment to the Funder: The agreed-upon share of the recovery is returned to the funder, covering:

    • Principal financing.

    • Success fee or agreed percentage of the recovery.

  • Surplus Distribution: Remaining funds are transferred to the claimant.

  • Post-Case Review: Conduct a review of the case to assess lessons learned and refine future funding strategies.

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