The use of third parties to fund plaintiffs’ legal and litigation expenses (“litigation funding”) is becoming an increasingly common practice in Europe and the United States, and has been used in Australia for many years. As the litigation funding industry has grown and evolved, it is becoming more common in arbitration. Indeed, there are some litigation funding companies that limit their investments to cases that are being arbitrated rather than tried in a country’s court system. Thus, arbitrators are being increasingly asked to award litigation funding expenses as costs.
By Jim Reiman May, 22, 2017 (originally published by the American Bar Association’s Section of Litigation, Alternative Dispute Resolution Committee – see full link above)