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Third-party litigation finance is an important option for plaintiffs with legitimate lawsuits. Unfortunately, some state and federal legislators are trying to suppress or destroy this option in order to protect big corporations from “the little guy.” How does it work? The following hypothetical shows how litigation finance works and why it matters.

Imagine you’ve just been fired from your job, and not for a good reason. In fact, you have evidence showing you were passed over for promotions and then let go because you sometimes talk about your Christian faith. Discriminating against you in this way is illegal—a violation of civil rights law. You can sue, but….

Your employer is a massive corporation with dozens of lawyers and several major law firms on contract. You’re just … you. Unemployed you. Even though you have a right to sue—a legitimate case that should get you back pay, other damages, and court costs—filing the case will cost thousands of dollars. If the company fights back, it might cost tens of thousands of dollars for depositions and other discovery to prove discrimination in court.

If you can’t afford to pay those costs yourself, you have three options. First, you can try to find a legal clinic or nonprofit to pay for the case. Unfortunately, those groups can only take a tiny percentage of cases. Second, you can find a law firm willing to work on contingency—meaning they pay all the costs in exchange for a share of the judgment or settlement. Finally, you can find a third party willing to pay the costs. This is third-party litigation finance.

There is almost no difference between a law firm working on contingency and third-party litigation finance. Either way, someone other than the plaintiff is paying the upfront costs and hoping to make money when the case is won or favorably settled. The only difference is where the money comes from: lawyers or investors.

Why would lawmakers favor lawyers over investors? 

And why would lawmakers favor wealthy corporations over ordinary people who can’t afford complex litigation?

You can answer these questions for yourself. Whatever the reason, attacks on litigation finance are harmful to the civil justice system and to every American who might need help in a legal fight.