Alternative Litigation Finance and the Attorney-Client Privilege

50 Pages Posted: 25 May 2014 Last revised: 30 Jun 2015

Grace M. Giesel

University of Louisville - Louis D. Brandeis School of Law

Date Written: May 23, 2014

Abstract

The United States legal system has a new player: the alternative litigation finance (ALF) entity. Funding of litigation by an entity that is not a party to the litigation has long existed in the United States in the form of attorney funding through contingent fees and insurer funding through the typical liability insurance contract. In situations in which those two avenues of third-party funding has not been available, parties, large and small, sophisticated and not, often have struggled to fund their own litigation. Today such parties have an additional option: ALF. ALF refers to funding of litigation “by entities other than the parties themselves, their counsel, or other entities with a preexisting contractual relationship with one of the parties.” ALF entities have no interest or involvement in the matter before providing funding but provide funding for the litigation and reap a return if the funded party is successful.

Keywords: alternative litigation finance, ALF, attorney-client privilege, joint clients, common interest

JEL Classification: K12

Suggested Citation

Giesel, Grace M., Alternative Litigation Finance and the Attorney-Client Privilege (May 23, 2014). Denver University Law Review, Vol. 92, No. 1, 2015; University of Louisville School of Law Legal Studies Research Paper Series No. 2015-13. Available at SSRN: https://ssrn.com/abstract=2441237

Grace M. Giesel (Contact Author)

University of Louisville - Louis D. Brandeis School of Law ( email )

Wilson W. Wyatt Hall
Louisville, KY 40292
United States

Paper statistics

Downloads
194
Rank
127,424
Abstract Views
804