Chile
Like many jurisdictions across the globe, Chile has experienced a surge in climate-related legal actions worldwide. These cases address issues such as environmental harm, corporate responsibility, and government accountability.
1. Is third party funding permissible for disputes?
Yes, third-party funding is permissible for disputes in Chile. The issue of third-party funding is not regulated in Chile. As there are no particular rules or limitations on third-party funding, not being prohibited either by law for the parties or ethically for the attorneys, it is a permissible practice. However, there are no known cases where third-party funding has been involved.
2. Are lawyers able to work on a contingent basis in the jurisdiction and are there any restrictions?
Chile allows lawyers to work on a contingency basis, and there are no specific restrictions on fee arrangements.
3. Can the court or tribunal order one party to pay the other’s legal costs?
In Chile, the rules regarding legal costs and who pays them are as follows:
- Small claims court: In the small claims court, neither the claimant nor the defendant can get their costs paid by the other party (apart from fixed costs like court fees, witness expenses, and experts’ fees). Each party has to pay their own legal costs, whether they win or lose.
- Other proceedings: In other types of proceedings, such as civil court cases, the court or an arbitrator has the power to order that a losing party pays interest on costs payable to a successful party. They may also order that party to pay some money on account of costs prior to the final amount of such costs being assessed.
4. Is insurance available to protect against adverse outcomes for funded litigation?
Yes, insurance is available to protect against adverse outcomes for funded litigation in Chile.
The Chilean insurance landscape was altered when amendments to the Commercial Code came into force on 1 December 2013. According to article 29 of the Chilean Insurance Act (also known as DFL 251), any dispute arising from insurance and reinsurance contracts governed by the law shall come under the jurisdiction of the Chilean courts. This rule is mandatory and cannot be repealed by agreement of the parties. Therefore, although there is contractual freedom to agree on the applicable law, any dispute must be settled in principle in the Chilean courts.
Contact
Sergio Yavar Partner, Guerrero Olivos Santiago
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