Old Limitations On Third-Party Funding Still Apply

Introduction

Historically, Irish law precluded parties with no connection or interest in proceedings from taking any part in or deriving any benefit from them. This was reflected in the common law principles of maintenance⁽¹⁾ and champerty,⁽²⁾ which were given legislative footing in ancient statutes enacted long before Ireland was an independent state. In a recent decision, the High Court confirmed that both maintenance and champerty remain part of Irish law (and remain both torts and offences).⁽³⁾ The decision is significant to third-party funders, which face a challenging legal landscape in Ireland.

Facts

The background to the High Court dispute arose out of the award of a mobile telephone licence in the 1990s. The plaintiff was the runner-up in a competition for the licence, arising from which the plaintiff commenced proceedings in 2001 claiming that there were irregularities with regard to the competition. The plaintiff recently advised the court that it