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ARTICLE · 30 MAY 2018

The Advent Of Litigation Funding And What Does It Involve?

Given the costs and uncertainties in the prosecution of disputes, and in particular large scale and complex international, commercial and construction disputes which are often ongoing for extended periods of time.

South AfricaLitigation, Mediation & Arbitration

Given the costs and uncertainties in the prosecution of disputes, and in particular large scale and complex international, commercial and construction disputes which are often ongoing for extended periods of time, third party funding of disputes (more commonly referred to as litigation funding), and in particular international arbitration disputes, has become a globally accepted way of facilitating access to justice, and particularly so following the global financial crisis of 2008.

At its most basic, litigation funding involves an agreement between a party to a dispute and a third party funder that provides for the financing of the prosecution of a dispute, in exchange for a return on the third party funder's investment.  Returns can take various forms, including an agreed amount or an agreed percentage share of the recovered proceeds of the dispute.  In the event that the claim does not succeed, the costs are covered by the third party funder.  If the relevant

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