In a recent landmark decision of the Grand Court in A Company
and A Funder 1, the Court has approved a third party
litigation funding agreement and in doing so given a roadmap to
funders as to what conditions it will apply in such cases. While
previous decisions of the Grand Court 2 have approved
third party funding agreements in principle, the Court's
observations have until now been restricted to the use of funding
for the benefit of impecunious liquidation estates. This was a case
involving a large multinational seeking to take advantage of
funding for other commercial reasons.
Background
The plaintiff, a large Korean company, sought comfort from the
Grand Court that it could legally avail itself of funding from a
third party commercial funder in connection with proceedings that
it intended to issue for the recognition and enforcement of a New
York arbitration award and related judgments.
