ABSTRACT
Third-party litigation financing involves an external party funding a legal claim, taking on the risk of loss in exchange for a share of any potential recovery. As European regulators prepare to establish a common regulatory framework for third-party litigation financing, this article draws on existing law and economics literature to examine the unique characteristics of third-party litigation financing, vis-a-vis other forms of financial support of litigation. Our findings highlight the strengths and weaknesses of different litigation-financing mechanisms in promoting socially desirable levels.
Emons, Winand and Parisi, Francesco, The Economics of Litigation Financing (October 16, 2024), Minnesota Legal Studies Research Paper No 24-43.
Leave a Reply