Frequently Asked Questions

When did Litigation Funding (LF) start?

Litigation funding started around 15 years ago in Australia and it has been extended to Europe and the United States. Recently there have been some litigation funders in Brazil and one in Peru.

Is LF a cession of claims?

No. Even though some litigation funders in other countries do acquire claims, the main purpose of a litigation funding is to finance the litigation assuming the risk of the results, without cession of claims from the litigation.

Why has litigation funding been focused on arbitration, both national and international?

Because the duration of arbitration processes is limited, whereas ordinary litigation can take much longer. Additionally, arbitration decisions are more predictable. However, some litigation funders have added other associated financial services.

How does the Litigation Fund decide whether or not to finance a case?

The litigation fund carefully analyzes the background of every case, and if the Investment Committee believes that the case has solid legal grounds and a high probability of success, it will finance the case.