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Funding the costs of litigation – a comparative analysis

Michael Makridakis, Christian Luthi, Mark Forte and Alex Potts QC of Conyers consider the differing approaches to third-party funding and contingency fee arrangements in Hong Kong, Singapore, the Cayman Islands, British Virgin Islands and Bermuda.

Businesses in Hong Kong, Singapore and around the world commonly organise their corporate structure to include entities incorporated in their home jurisdiction, as well as those in offshore jurisdictions such as the Cayman Islands, the British Virgin Islands and Bermuda.

When disputes arise within a group of companies or with external parties, claimants are often required to make important, preliminary choices. For example, in which jurisdiction should the claim be filed? Should the claim proceed by way of commercial litigation or arbitration? And vitally, how much will the proceedings cost and what, if any, external funding options are available, over and above the claimant’s own resources?

The purpose of this article is to identify and compare the third-party funding options available for claims brought in Hong Kong or Singapore, with those available in the offshore jurisdictions of the Cayman Islands, the British Virgin Islands and Bermuda (the subject jurisdictions).

TYPES OF ‘FUNDING’ AND ‘PROCEEDINGS’


In addition to conventional funding arrangements that might be provided by a company’s shareholders or creditors, funding for legal costs and disbursements may be available directly from a specialist litigation funding provider or indirectly from the lawyers conducting the case, or both.

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Christian R. Luthi
Director and Chairman

Bermuda   +1 441 298 7814


Mark J. Forte
Partner, Head of BVI Litigation & Restructuring and Office

British Virgin Islands   +1 284 852 1113



Alex Potts QC
Partner, Head of Cayman Islands Litigation & Restructuring

Cayman Islands   +1 345 814 7394


This article was first published in Commercial Dispute Resolution.