If the case is likely to win, then a lawyer or investor will pony up his own cash for a cut of the outcome. This means that only cases that people feel are overwhelming will be litigated. Marginal cases to bleed your enemy dry do not work, because they work against you.

Isn't that a bad thing since likely to win doesn't map directly to being right? For example, even if I was seriously wronged, my opponent could have access to greater legal resources, or my position could be socially unpopular, or the situation could be difficult to prove, etc.

Certainly litigation in the UK can be very difficult to stop once started as if either side gives up there is a good chance they will be expected to pay the other sides fees up to that point.

In the UK, claimants using a 'no win no fee' deal usually buy After The Event insurance to protect them against having to pay the other sides' costs.