In a landmark ruling, the Supreme Court has confirmed that a
person who funds litigation, but is not a party to the proceedings,
may be liable for some or all of the costs of the proceedings where
they are the main controller of, and driving force behind, the
litigation and stand to benefit if the party they are funding is
successful (Moorview Developments Ltd & Ors v First
Active plc). Arthur Cox acted on behalf of
First Active plc, as now substituted by Ulster Bank Ireland
DAC.
In light of this decision, it is no longer possible for
non-party funders to hide behind the corporate veil to avoid a
costs order against them personally.
LITIGATION FUNDING IN IRELAND
Litigation funding is where a third party provides financing to
allow legal proceedings to progress. Professional third party
litigation funding – where a commercial organisation
unconnected to the litigation in question funds the litigation with
a view to making a profit - is not currently allowed in
