Litigation Funding – Terms Of Agreement Privileged

By Chiva Arthurs, Director at Gough Law

In a recent decision, the English High Court has held that the terms of a litigation funding agreement were protected by legal advice privilege, such that they were not capable of being disclosed to the opposing party. Bearing in mind the sharp increase in litigation funding in recent years, the decision will be welcomed by legal finance users and provides additional reassurance that the terms of their funding agreements (including the amount sought, and the funder's identity) will remain out of the public domain and out of their opponents' grasp.

Legal advice privilege is the rule that communications between a lawyer and a client are confidential, such that they cannot be disclosed to any party without the permission of the client.