Non-Recourse Litigation Finance Agreements
Institutional litigation financing transactions facilitated via FundMyCases are strictly non-recourse financial advances. Capital providers participate solely in proceeds resulting from settlement, award, or final judgment with zero personal liability to the claimant or legal counsel.
Zero Recovery = Zero Repayment
Repayment is solely contingent on favorable litigation outcome. If the underlying matter is dismissed, settled for zero, or lost at trial, the advance is completely extinguished without recourse.
Zero Settlement Control
FundMyCases and syndicate capital providers hold zero governance, directional influence, or veto power over litigation decisions. Claimants and their independent legal counsel maintain absolute control.
ABA Model Rule 5.4 Adherence
Capital advances contract directly with the claimant entity or litigation trust SPV. Attorney fees are preserved strictly per attorney-client retainers with zero non-lawyer fee-splitting.
Standard Non-Interference Covenant (Section 7.2)
"Nothing in this Agreement or related transaction documents shall confer upon the Funder or any Syndicate Participant any authority, right, or power to direct, control, conduct, compromise, or settle the Underlying Claims or any related litigation or proceedings."
"The Claimant and Claimant's Legal Counsel retain absolute and unfettered discretion regarding all strategic, tactical, and settlement determinations, in accordance with applicable professional conduct rules."
Why This Protects Claimants
Claimants retain 100% ownership of their legal rights and can accept or reject any settlement offer based solely on their best interests and counsel’s advice.
Why This Protects Capital Allocators
Judicial neutrality ensures the agreement cannot be challenged by opposing counsel under traditional common-law doctrines of maintenance or champerty.