Toward a Regulatory Framework for Third-Party Funding of Litigation
17 Pages Posted: 23 Jun 2013 Last revised: 9 Jul 2013
Date Written: July 9, 2013
Because third-party funding and sales of legal rights are equivalent in terms of their economics, I examine arrangements in which third-party sales of legal rights are permitted today – waiver, subrogation, and settlement agreements. The existing arrangements provide valuable lessons for the appropriate regulatory approach to third-party financing of litigation.
Keywords: third-party funding, sales of legal rights, waiver, subrogation, settlement, economics of legal rights
JEL Classification: K00, K13, K39, K41, K49
Suggested Citation: Suggested Citation