How outside investors finance civil claims in return for a share of the proceeds — and the legal, professional and costs rules that keep the arrangement in check.
A funded claim brings a third party into the litigation relationship, and the law polices that intrusion at every turn. This chapter begins with what third-party funding is, how it differs from a conditional fee arrangement, and the self-regulatory regime that governs funders in England and Wales. It then examines when a funding agreement can still fail as champertous or fall to be treated as a damages-based agreement, before turning to the solicitor's duties when a client takes funding — advice, client consent to disclosure, and control over settlement. It closes with the costs consequences: non-party costs orders against funders, the Arkin cap, and whether funding opens the door to security for costs.
