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I recently came across this article on the Globe and Mail (http://www.theglobeandmail.com/report-on-business/small-business/sb-money/can-crowdfunding-work-for-restaurants/article26623588/) about crowdfunding startup restaurants.
A small number of aspiring restaurateurs have found success in this form of alternative financing. The article suggests that it can cost as much as $500,000 to start a restaurant, depending on its size and design work. That’s similar to the amount of legal fees it takes, I speculate, for a complicated case to make its course through to trial and an appeal.
Most litigators expect to be paid as work is being done. Unless the lawyer and the client enter into a contingency fee agreement, the lawyer normally expects full payment of her fees regardless of the outcome of the case. An impecunious litigant with a meritorious claim or defence may be forced to represent himself or give up on the claim or defence altogether. Is crowdfunding a new financing solution for litigants? Would this option enhance access to justice? A search on the Law Society of Upper Canada’s website yields no results as to the Law Society’s position on crowdfunding litigation and whether crowdfunding raises professionalism, confidentiality, and privilege issues for the retained lawyer.
So. Who wants to the pioneer and crowdfund their next lawsuit?
Addendum:
Professor Albert Oosterhoff presented his paper on “Crowdfunding and the Law of Trusts” at the Law Society of Upper Canada 18th Annual Estates and Trusts Summit, Day 1, on October 7, 2015. Download Professor Oosterhoff’s paper
