“Finding ways to de-risk, off-book and hedge litigation risk and costs, by leveraging a combination of third-party capital, insurance, and alternate fee agreements, allowing us to share risk with our clients, in a truly collaborative way“
In these globally challenging economic times, the preservation of cash is a key priority for most businesses. Reducing or eliminating the legal costs associated with litigation and arbitration is therefore an increasingly attractive proposition. We have been working hard with third party funders and insurers to create packaged solutions that make no cost, risk free litigation a reality for our clients.
Our Global Funding Guide provides an overview of the practice, development, availability, regulatory landscape, and practical implications of litigation funding in key global jurisdictions.
The attraction of Third Party Funding and indeed any sort of Alternate Fee Agreement or “AFA” is obvious, the opportunity to derisk and off book the spend and adverse risks in a dispute, whilst keeping control of the decision making process, and in the knowledge that not only are your and your lawyer’s financial interest directly aligned, but that an independent 3rd party has pledged its own money to financially back your dispute.
However, to get the most out of this guide, it’s important to understand a few of the key basis of third party funding and AFAs, including some of the more commonly used terminologies. A glossary of common terms is included.
In each of the key jurisdictions covered in this guide, we have asked four key questions:
The questions above provide a general overview of the options available in each jurisdiction, as well as information about the current trends and local contacts.
It is impossible, in this guide, to go into detail in relation to all of the options available, funding and insurance, but we hope this guide will serve as an essential resource for understanding the options and opportunities available.
By leveraging a combination of these options, we continue to strive to offer clients truly alternate de-risked and off-book funding solutions for the resolution of disputes, sharing risk and reward in a truly collaborative way.
Key resources
This guide was updated in October 2024. Eversheds Sutherland takes all reasonable care to ensure that the materials, information and documents, including but not limited to articles, newsletters, reports and blogs, including this guide ("Materials") on the Eversheds Sutherland website are accurate and complete. However, the Materials are provided for general information purposes only, not for the purpose of providing legal advice, and do not necessarily reflect the present law or regulations. The Materials should not be construed as legal advice on any matter. The Materials may not reflect the most current legal developments. The content and interpretation of the Materials and the law addressed in the Materials are subject to revision.
No representation or warranty, express or implied, is made as to the accuracy or completeness of the Materials and therefore the Materials should not be relied upon. Eversheds Sutherland disclaims all liability in respect of actions taken or not taken based on any or all of the contents of the Materials to the fullest extent permitted by law. The Materials are not intended to be comprehensive or to include advice on which you may rely. You should always consult a suitably qualified Lawyer/Attorney on any specific legal matter.
Any views expressed through the Materials are the views of the individual author and may not reflect the views of Eversheds Sutherland or any other individual Lawyer/Attorney.
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.
Share this page