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ARTICLE · 16 NOVEMBER 2018

Three's Company Or Three's A Crowd? Recent Guidance From The Courts On Third-Party Funding Of Litigation

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Third-party funding of litigation is a relatively new phenomenon in Canada.

CanadaLitigation, Mediation & Arbitration
Kelsey Gordon
Kelsey Gordon
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Overview

Third-party funding of litigation is a relatively new phenomenon in Canada. Under this type of funding arrangement, a third-party lender agrees to advance funds to a litigant, subject to terms and conditions, usually in exchange for a certain percentage of any amount that is recovered through settlement or after a judgment. As courts have recognized, these types of arrangements have the potential to increase access to justice by providing litigants who do not have access to significant capital with access to important resources and tools that may facilitate their ability to fully advance the merits of their claims. From a commercial perspective, these types of third-party funding arrangements could open up a whole new market for investment opportunities.

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