Litigation finance, or third-party litigation funding (TPLF), refers to an arrangement whereby a third party, which has no other connection to the litigation, finances some or all of a party’s (usually the claimant’s) legal costs in return for a share of any proceeds. The third-party litigation funder typically agrees to fund litigation in exchange for a fee, which is normally a percentage of the award made, or the settlement secured, in favour of the claim holder.
Litigation financing is generally provided on a non-recourse basis and the funded party is under no obligation to return…