Third Party Litigation Funding in Europe

Abstract

Based on interviews of all UK based third party litigation funders the paper provides new empirical evidence on the nature, extent and type of third party funding of litigation. It also examines the emergence of new group or class action third party funders in Europe focused primarily on follow-on cartel damage claims. The discussion is then expanded to the broader issues such as the justification for third party funding, its impact and a critical assessment of the arguments against such funding.

Keywords: litigation, legal costs, third party funding, class actions, legal access, legal insurance, cartel damages

JEL Classification: K13, K40, K41, G22, G24, L12