Program Description: Third-party financing of litigation is the practice of an outside individual or organization providing funding for a potential or ongoing lawsuit. This investor is not a party to the lawsuit, and defines repayment terms as a condition to funding the suit. Repayment to the investor is generally done out of any recovery from the lawsuit. If there is no recovery, the plaintiff generally need not repay the loan. Supporters contend third-party financing increases access to the civil justice system, while others argue that the practice injects a stranger in the attorney-client relationship and encourages frivolous lawsuits.
Jeremy Kidd, Assistant Professor of Law, Mercer University Walter F. George School of Law
Anthony Sebok, Adjunct Professor of Law, Fordham University School of a Law
For More Information, Contact: Congressional Civil Justice Caucus Academy