Litigation FundingPractical Aspects

Abstract

The absence of funding for legal representation is a major barrier to justice for victims seeking to hold corporations to account for human rights abuses. Litigation funders, which primarily invest in commercial litigation, are increasingly interested in funding large-scale multinational litigation. However, the level of their interest is a function of the magnitude of the potential return on the funder’s investment, the prospects of success and recoverability of damages, the legitimacy of the funding arrangements, and the funder’s confidence in the legal system of the country in question, as well as the magnitude of any adverse costs liability for which the funder might be liable. Susan Dunn and Felix Curtis outline the basic principles of litigation funding (where permitted); how it works; the considerations a funder will make to evaluate the viability of an investment in a multinational human rights or environmental case; and important variations in litigation funding rules in different countries.