Third-party litigation funding in Luxembourg (2)

The Conférence du Jeune Barreau de Luxembourg (CJBL) and the Conférence Saint Yves (CSY) organised a legal conference on 15 November 2022 about “Third-party litigation funding in Luxembourg : current practice and future developments”.

Third-party litigation funding (“TPLF”) is a new subject for Luxembourg. Its development can potentially enhance Luxembourg’s legal offering and the attractiveness of the Luxembourg financial center. However, TPLF can raise concerns in relation to the professional duties of Luxembourg lawyers. It may also present a number of potential risks to the proper functioning of the courts in Luxembourg.

I. LITIGATION FINANCE OR THIRD-PARTY LITIGATION FUNDING BY FABIO TREVISAN
Definition of TPLF.
Origins of TPLF.
Contemporary developments.
Present situation in the EU and Luxembourg.
Litigation finance contract.
What are the potential legal challenges to TPLF’s development in civil law countries ?
  TPLF is not covered by banking monopoly or credit transaction
  Legal challenges : rules applicable to lawyers registered with the Luxembourg Bar
  Civil law countries : cultural issues at play influencing its growth ?
  An exclusively Anglo-Saxon phenomenon ?
The benefits and opportunities of TPLF.

II. INTRODUCTION TO THIRD-PARTY FUNDING IN CIVIL LAW JURISDICTIONS BY ISABELLE BERGER
The basics of litigation funding from the funder’s perspective.
The funder’s core offering.
TPLF users and areas of law.
Which cases are suitable for funding ?
Funding process.
Commercial side of third-party funding.
Access to justice vs managing legal cost and risk.
Practical tips.

III. CHALLENGES AND OPPORTUNITIES OF THE LUXEMBOURG LEGAL ECOSYSTEM FOR THIRD-PARTY FUNDERS BY OLIVIER MARQUAIS
Introduction.
TPLF and the Luxembourg agenda.
Whether and how to regulate TPLF ?
Regulating TPLF would increase funders’ offering.
How should TPLF be regulated ?
How should TPLF be implemented ?
Which corporate structure ?
Investment vehicles and legal forms.

IV. ETHICAL ASPECTS FOR LUXEMBOURG LEGAL PRACTITIONERS BY FRANÇOIS KREMER
Critical remarks.
Lawyers’ involvement in TPLF.
Distinctive features of TPLF.
What ethical issues arise from TPLF ?
  (i) Privileged information and disclosure
  (ii) Litigation and settlement strategy
  (iii) TPLF and lawyers’ fees
  (iv) Legal costs and damages for frivolous proceedings.
Final observations.

Third-party litigation funding in Luxembourg