Litigation funding agreements - maybe not so private anymore

Key details of litigation funding agreements (LFAs) may now have to be released to the other party or parties as well as to the court.

This is the effect of a recent Court of Appeal decision and brings New Zealand in line with Australian practice.

Court supervision of LFAs

LFAs were until recently held outright to be an abuse of process. Judges were concerned about the now antiquated torts of maintenance (assisting another to sue) and champerty (taking part of the proceeds of the action). However the fundamental principle of access to justice has trumped these concerns, allowed litigation funding to become a prominent feature in English and Australian litigation. It is still in its infancy in New Zealand.