Iraq
Trend-wise, corporate counsel tell us that they face increasing numbers of regulatory disputes with an increase in enforcement actions on issues such as cybersecurity, white-collar crime, worker classification, and compliance with evolving healthcare cases.
It is anticipated that employment and labour disputes will take centre stage, with increasing exposure expected to continue alongside disputes across various types of litigation, arbitrations, and regulatory proceedings which are predicted to remain stable or increase.
1. Is third party funding permissible for disputes?
Third-party funding is not common in Iraq, however there is nothing which prohibits a third party funding a dispute.
There are no provisions under the Lawyers Law No. 173 of 1965 (“Lawyers Law”) that prevent TPF. Furthermore, it is provident to note that Article 66 and 67 of the Lawyers Law outlines the concept of providing financial aid by the Iraqi Bar Association (“IBA”) in the form of a judicial committee formed at the centre of each court of appeal in the Republic of Iraq, consisting of three lawyers selected by the IBA. Moreover, Article 67 of the Lawyers Law stipulates that the aforementioned judicial committee is competent to grant judicial aid in the following cases:
- if one of the parties in the lawsuit is insolvent and incapable of paying attorney fees
- if a person could not find an attorney to defend them
- if a court requests a lawyer be appointed on behalf of an accused, or a minor that has not selected a lawyer to defend them.
2. Are lawyers able to work on a contingent basis in the jurisdiction and are there any restrictions?
Contingent fees are permitted for lawyers in the Republic of Iraq, noting that Article 56(1) of the Lawyers Law stipulates that the lawyer is entitled to attorney fees according to the contract made between them and their client, provided that in non-criminal cases, the fees should not exceed twenty percent of the value of the matter subject to the representation, unless the purpose of the claim is to benefit from the judgment issued in it more than what the lawsuit claim, in which case lawyers are entitled to fees based on the total amount.
3. Can the court or tribunal order one party to pay the other’s legal costs?
Yes. Article 63 of Lawyers Law stipulates that an individual whose lawsuit is dismissed based on their request is considered as having lost the lawsuit with respect to attorney fees only.
The court shall rule on attorney fees a rate of (10%) of the value of the judgment, provided it does not exceed five hundred thousand Iraqi dinars.
4. Is insurance available to protect against adverse outcomes for funded litigation?
Private insurance can be acquired to protect against adverse outcomes for funded litigation in Iraq, however this type of insurance is often referred to as litigation risk insurance, and is not commonly provided in Iraq, it can be acquired from international insurers.
Contact
Tawfiq Tabbaa Managing Partner
Omar Hussein Legal Director and Head of Litigation – Iraq
T: +964 78 0124 9024
Nadeen Rashdan Senior Associate
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