Jordan
The increasing use of legal technology, AI and machine learning, will continue to enhance decision-making and drive efficiency in legal finance. Data-driven insights will make litigation finance more attractive for investors and funders alike and we anticipate this will make funding more widely available in the market.
Globally, environmental, social, and governance (ESG) considerations are gaining prominence. In Jordan, we expect to see growth in these areas as the market turns to litigation to address environmental harm, corporate responsibility, and government accountability related to climate change, social justice, and ethical practices.
1. Is third party funding permissible for disputes?
There are no rules that prohibit third-party funding per se in Jordan. However, it is not common in practice and has therefore not been subject to judicial scrutiny.
More importantly, the Jordanian Bar Association’s Code of Conduct (the “Code”) prohibits the lawyers’ services from being used or exploited by any third person through brokering or interfering between the lawyer and his client and further provides that the lawyer’s relationship shall be personal with, and their duty direct to, their client.
The Code considers that charities who provides assistance to persons in need shall not be subject to this prohibition.
2. Are lawyers able to work on a contingent basis in the jurisdiction and are there any restrictions?
Lawyers are able to work on a contingent basis. However, Article 46(1) of the Jordanian Bar Association Law stipulates that the attorney receives remuneration according to the contract agreed with the client, provided that the fee shall not exceed 25% of the actual value of the dispute, except in exceptional cases where the determination of such fees is left to the discretion of the JBA.
Such exceptional cases include that a dispute is in a foreign language, or is in an area far from the attorney’s domicile (i.e. in a city far from the city that the attorney usually undertakes his legal work).
3. Can the court or tribunal order one party to pay the other’s legal costs?
Article 46(4) of the JBA Law stipulates that upon the request of the successful party to the dispute, the court must order the unsuccessful party to pay attorneys’ fees at an amount not less than 5% of the value of the judgment, subject to a cap of 1000 Jordanian Dinars before the first stage of litigation. Furthermore, the attorneys’ fees in the appellate stages must not exceed half of what was awarded by the court of the first stage of litigation.
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 Jordan. However this type of insurance is not commonly provided.
Contact
Hani Kurdi Partner – Head of Litigation
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