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ARTICLE · 21 AUGUST 2018

As Third-Party Class Action Funders Make Their Mark In Canada, An Ontario Court Establishes Some Ground Rules

Over the past few years, third-party litigation funding – including funding by major international litigation funders – has become increasingly common in class actions litigation in Canada.

CanadaLitigation, Mediation & Arbitration
  • Over the past few years, third-party litigation funding – including funding by major international litigation funders – has become increasingly common in class actions litigation in Canada.
  • In a recent decision, Houle v. St. Jude Medical Inc., the Ontario Superior Court of Justice summarized the current state of the law regarding litigation funding agreements.
  • The decision is one of the first to address the interplay between the Law Foundation of Ontario’s Class Proceedings Fund1 and private third-party funding agreements, referring to the rules relating to the Fund to limit (by analogy) a third-party funder’s contingency fee to 10%, with amounts greater than 10% being subject to Court approval.

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