Currently, the British Virgin Islands has no legislative
framework for regulating third party litigation funding. Until
recently, the absence of such a framework led many to believe that
the rules against maintenance and champerty still operated so as in
practice to prevent litigants from raising funds from third parties
to prosecute or to defend claims. In Crumpler v Exential
Investments Inc (BVIHC(COM) 2020/0081; 29 September 2020) Jack
J clarified that third party funding arrangements were enforceable
in the BVI.
While precedent in this area is limited, it appears that not all
litigation funding will necessarily be permitted. There is no
longer any statutory impediment to third party litigation funding,
but the court still appears to have a residual responsibility for
preventing the self-interested encouragement of lawsuits.
Accordingly, litigation funding must be responsible, which is to
say that it must not cede control of the prosecution of a cause of
action to
