Third-party funding ("TPF") is becoming a hot-button
topic as it receives broader acceptance in Canada outside of the
realm of class actions and international disputes.1
However, many counsel remain unaware or skeptical of TPF as a
strategic option, and few have explored the opportunity with their
clients, negotiated and drafted funding agreements or had to
navigate the practical and ethical issues relating to such funding
arrangements.
In this brief space, we hope to walk readers through the
practical steps involved in assessing and accessing TPF for a
client.
1. Is TPF appropriate for the client?
Whether TPF is appropriate for a client depends upon several
factors, including the client's financial resources, the merits
of their claim and the quantum in dispute. Risk and reward are
central to a third party funder's decision to invest and if a
claim has little prospect of success or offers little return to a
third party funder they are unlikely to be interested
