Litigation Funding: A New Dawn?

The issue of legal costs and how proceedings may best be funded has always been a source of great interest to lawyers and clients. The Irish legal system has been very conservative in allowing the funding of litigation by parties not directly involved. It was only last year that the principle of After the Event legal costs insurance was recognised in the Irish High Court. The issue of litigation funding by a non-party has now arisen in a significant pending case.

Medieval Torts

The long established rule of common law was that only parties directly involved in litigation could fund the proceedings or share in any damages awarded.  This may have been born originally from an antipathy to litigation and a reluctance to see litigation being promoted in any way, or the fruits of litigation being assigned to non-parties.  Maintenance involves the provision of financial support to litigation in which the supporter has no direct or legitimate interest.  Champerty is the