Litigation Funding and the Rest of the World

third-party funding court roomLitigation funding, or third-party funding as it is also known, is by far the most popular and effective method of acquiring financial support for an impending court case.

This method is widely used across the whole of England, Wales, the US and Australia.

But as its positive reputation grows worldwide, how are other countries implementing it?

Litigation funding in other parts of the world is still a growing trend, especially compared to its use and success in England and Wales.

The thing to remember is that other countries have varied attitudes and laws, including their opinions and methods towards maintenance and champerty. The laws regarding those two factors can make litigation funding illegal, but what do they mean?

Maintenance

This is when a third party, whether it is a business or individual, provides financial support to another party, in which they have had no previous dealings with.

Champerty

If a third party provides financial assistance to a claimant, and gains a financial reward, this is classed as champerty.

Litigation funding developments by nation

South Africa

Litigation funding was made legal in 2004, as the ban on ‘no win, no fee’ financial deals was lifted.

When this was implemented, South African courts no longer felt that maintenance and champerty were viable rules.

Hong Kong

Litigation funding is still an on-going process in Hong Kong, as a reform is currently being considered.

This follows on from the conviction of Winnie Lo in 2009. The local solicitor was charged with conspiracy to maintain (receive funding), but the conviction was subsequently overturned in 2012.

Germany

Where litigation funding is concerned, Germany laws and attitudes are very similar to those in the UK.

There are no maintenance or champerty laws in place, which has led to a booming industry.

This method of funding has also been heavily used in cartel damages cases.

Well that’s just a few of the global attitudes towards litigation funding, and as you can see, it is a truly invaluable method that is being implemented throughout the world.

Photo by: cormac70
About Christopher

Speak Your Mind

*