Where would an idea like third-party litigation funding come from? It would have to spring from seemingly unpromising soil where lawyers are barred from taking percentage contingency fees and where "loser pays" rules still hold sway—someplace like Australia.
More than anyone else, IMF (Australia) Ltd's Hugh McLernon and John Walker pioneered the model for investing in lawsuits that's starting to take hold in the United States and the United Kingdom. IMF hires experienced litigators to evaluate claims and identify those most likely to produce large settlements and awards. McLernon figures they take less than five percent of the cases brought to them.
