Disputes | 15 October 2019

Basic principles of third-party funding

Over the past 30 years, third-party dispute funding has experienced an exponential growth in civil and common law jurisdictions. As the common law doctrines of maintenance and champerty were softened or even abolished (most often in the context of international arbitration proceedings), third-party funding became a viable option for companies that cannot otherwise afford the costs of bringing the dispute forward, and for companies that prefer to take the legal costs off their books (for example to free up funds for other investments) by diverting the costs of the dispute to a third-party in exchange for a percentage of the anticipated proceeds. [Continue Reading]