October 2015
In this legal paper published in Rechtsgeleerd Magazijn Themis of October 2015, professor W.H. van Boom and Mr. J.L. Luiten explore the pro-s and con-s of litigation finance by third parties and the qualification of the litigation funding agreement under Dutch law. The authors are generally positive about the possible effects of litigation funding. They value the fact that litigation funding can enable the prosecution of a valid claim that would otherwise remain on the shelf due to the incapability of the claimaint to pay the costs of litigation. Noting that litigation funding is not subject to specific regulation in the Netherlands, the authors do suggest that regulation may be appropriate in the area of the funding of consumer claims where information asymmetries are most likely to occur. The full text article (in Dutch) can be downloaded here