It may happen that a company has legitimate claims but does not take action due to legal costs. Swiss Chamber has created a new Third Party Funding service to help companies access funding for legal proceedings.
Third party funding: what is it and how does it work?
There are market players willing to bear all the costs of a lawsuit (lawyers’ fees, court costs, arbitrators, experts, etc.) in exchange for a portion of any proceeds recovered. If the outcome is unfavourable, they do not claim any reimbursement, thereby assuming all the financial risk of the case.
Swiss Chamber, through Promosvizzera, provides assistance to Italian and foreign companies in the search for a funder willing to bear all the costs of your litigation, whatever its nature, with the following services:
- preliminary study of the case: through a pool of experts (experts, lawyers, accounting advisers, etc.), the TPF (third party funding) research centre evaluates the merit of the claim, the issues involved in it and its chances of success;
Third Party Funding
Swiss Chamber, by means of Promosvizzera, provides assistance to Italian and foreign companies in the search for a funder willing to bear all the costs of your litigation, whatever its nature, with the following services:
- preliminary study of the case: through a pool of experts (experts, lawyers, accounting advisors, etc.), the Center evaluates the merit of the claim, the issues involved in it, its chances of success;
- search for funders: if the Preliminary Study of the claim has been successful, the TPF Study Center identifies, even through brokers, the funder that it deems most suitable for that specific dispute.
- auxiliary services: support to the holder of the case in managing the relationship with the funder both in the drafting of the loan contract and during the dispute (periodic reports to the funder; management of relations with the funder in the choice and possible replacement of legal advisors, of experts and arbitrators, as well as in the event of a settlement proposal). Fees to be agreed on a case by case basis.
The TPF Research Centre at Swiss Chamber
In collaboration with Abbatescianni Studio Legale e Tributario, Swiss Chamber has promoted the creation of a research centre dedicated to third party funding for national and international litigations.
The purpose of the Research Centre, which is independent of Swiss Chamber, is to contribute towards reflecting on TPF and raising awareness in Italy about its most delicate aspects, such as the arbitrators’ independence from the funder, the obligation to disclose the funding, the management of litigations, issues related to the settlement of the dispute and the various funding methods.
In addition to creating a third party law doctrine and case law library focusing on third party funding, which is also available online, the Research Centre aims to promote conferences and publications and to launch a dedicated blog, while also drafting codes of conduct that can govern the conflicting interests of the various TPF operators.
TPF site: https://www.centrostuditpf.com/
