Therium is a founding member of the Association of Litigation Funders (ALF) and below we have explained more about the role of the association and how it impacts the wider legal industry.
Litigation funding has become an important market for the legal industry and an invaluable tool for investors and claimants seeking support. The industry can dramatically affect the ability to pursue legal challenges in both arbitration and litigation. As such it is incredibly important for this industry to be regulated to ensure the integrity of funding and the legal process. This is where the Association of Litigation Funders (ALF) comes in.
What is the Association of Litigation Funders?
The ALF was founded in November 2011 as a voluntary body that monitors litigation funders and ensures they adhere to a strict Code of Conduct. This Code was developed using months of intense research and experience from lawyers, academics, and stakeholders to ensure fair practices that preserve and protect the public.
The Code was approved by several entities including the Board of the Civil Justice Council, Lord Justice Jackson, and the Master of the Rolls Lord Neuberger of Abbotsbury. The Board of Civil Justice Council welcomed the formation of the ALF to promote transparency and maintain a high standard in the litigation funding market. More information about the Civil Justice Council can be found here.
What does the Association of Litigation Funders Code Provide For?
The Code of Conduct that all ALF members adhere to is exhaustive but the key aspects are set out by the ALF as follows;
Capital adequacy of funders
The Code requires funders to maintain adequate financial resources at all times to meet their obligations to fund all of the disputes they have agreed to fund, and to cover aggregate funding liabilities under all of their funding agreements for a minimum period of 36 months.
Termination and approval of settlements
The Code provides that funders must behave reasonably and may only withdraw from funding in specific circumstances. Where there is a dispute about termination or settlement, a binding opinion must be obtained from an independent QC, who has been either instructed jointly or appointed by the Bar Council.
Control Under the Code
Funders are prevented from taking control of litigation or settlement negotiations and from causing the litigant’s lawyers to act in breach of their professional duties. This is in line with the practice, in England & Wales, of keeping the roles of funders, litigants and their lawyers separate. Because of their interest in the litigation, funders may ask to be kept informed of the progress of the case. Some funders may also have considerable litigation experience that could benefit the litigant and its legal team.
Therium’s involvement in the Association of Litigation Funders
As a leading global provider of litigation funding, Therium is proud to be a founding member of the ALF which has consistently delivered litigation funding and innovated the market to fit various legal system requirements. To date, we have raised billions in litigation funds through our full range of litigation financing products ranging from single case litigation to arbitration funding and associated litigation portfolios.
Our work provides funding to various clients whether it be individuals, companies, group litigations (class actions), or charities via our not-for-profit arm. We have used our extensive knowledge and network in the legal market to help form the ALF’s values and strive to be a leading example for the industry.
Therium Litigation Funding
Along with our commitment to the ALF, we are also part of several important bodies such as International Litigation Funding Association ILFA. We practice in 5 continents and have to date funded claims valued at $54bn. Contact us now to find out more about our litigation funding process or sign up to The Brief to stay up to date with the latest in litigation finance.