Litigation Funding and Success Fees: A Risky Combination

In an earlier post, I had said that the regulatory environment for litigation funding in Germany is pretty straight forward. However, success fees remain by and large illegal in this country, a certain liberalization in 2008 not withstanding. Which makes for a potentially dangerous combination. A recent judgment (paywalled) by the Court of Appeals (Oberlandesgericht) Munich dealt with the intersection of litigation funding on the one hand and success fees on the other hand. Continue reading

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Litigation Funding – Some Empirical Findings

The March 2012 issue of Anwaltsblatt, a monthly journal issued by the German Bar Association (Deutscher Anwaltverein), reports some empirical findings on the use of litigation funding in Germany. In April/May 2011, the Soldan Institut surveyed a random sample of 1,200 lawyers in private practice. The same survey also covered success fee arrangements, on which I plan to post seperately. Continue reading

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Update: Third-Party Litigation Funding: Movements in the German Marketplace

In last week’s post on third-party litigation funding, I had been speculating about ERGO’s plans for its recently re-branded litigation funding business, Legial. Perhaps I was not the only one:

Today’s Handelsblatt – unfortunately only in the print version, page 36, not available online to non-subscribers – reports that ERGO has no plans to exit the business, as Allianz have done. Quite to the contrary: The paper quotes Legial’s Thomas Kohlmeier as saying that ERGO plans to triple the volume of litigation funding business over the next three years.

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Third-Party Litigation Funding: Movements in the German Marketplace

In the United Kingdom, third-party litigation funding is currently getting some attention in the legal press:  The industry has agreed on a Code of Conduct, which was published by the Civil Justice Council in late November 2011. US litigation funders appear to have an eye on the European market – using the word European in the European sense, i.e. including the UK. What does the German market for litigation funding look like? Continue reading

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