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  • 1.

    Is third-party litigation funding permitted? Is it commonly used?

  • 2.

    Restrictions on funding fees
    Are there limits on the fees and interest funders can charge?

  • 3.

    Specific rules for litigation funding
    Are there any specific legislative or regulatory provisions applicable to third-party litigation funding?

  • 4.

    Legal advice
    Do specific professional or ethical rules apply to lawyers advising clients in relation to third-party litigation funding?

  • 5.

    Do any public bodies have any particular interest in or oversight over third-party litigation funding?

  • 6.

    Choice of counsel
    May third-party funders insist on their choice of counsel?

  • 7.

    Participation in proceedings
    May funders attend or participate in hearings and settlement proceedings?

  • 8.

    Veto of settlements
    Do funders have veto rights in respect of settlements?

  • 9.

    Termination of funding
    In what circumstances may a funder terminate funding?

  • 10.

    Other permitted activities
    In what other ways may funders take an active role in the litigation process? In what ways are funders required to take an active role?

  • 11.

    Conditional fees
    May litigation lawyers enter into conditional or contingency fee agreements?

  • 12.

    Other funding options
    What other funding options are available to litigants?

  • 13.

    Time frame for first-instance decisions
    How long does a commercial claim usually take to reach a decision at first instance?

  • 14.

    Time frame for appeals
    What proportion of first-instance judgments are appealed? How long do appeals usually take?

  • 15.

    What proportion of judgments require contentious enforcement proceedings? How easy are they to enforce?

  • 16.

    Funding of collective actions
    Are class actions or group actions permitted? May they be funded by third parties?

  • 17.

    Award of costs
    May the courts order the unsuccessful party to pay the costs of the successful party in litigation? May the courts order the unsuccessful party to pay the litigation funding costs of the successful party?

  • 18.

    Liability for costs
    Can a third-party litigation funder be held liable for adverse costs?

  • 19.

    Security for costs
    May the courts order a claimant or a third party to provide security for costs? (Do courts typically order security for funded claims? How is security calculated and deposited?)

  • 20.

    If a claim is funded by a third party, does this influence the court’s decision on security for costs?

  • 21.

    Is after-the-event (ATE) insurance permitted? Is ATE commonly used? Are any other types of insurance commonly used by claimants?

  • 22.

    Disclosure of funding
    Must a litigant disclose a litigation funding agreement to the opposing party or to the court? Can the opponent or the court compel disclosure of a funding agreement?

  • 23.

    Privileged communications
    Are communications between litigants or their lawyers and funders protected by privilege?

  • 24.

    Disputes with funders
    Have there been any reported disputes between litigants and their funders?

  • 25.

    Other issues
    Are there any other issues relating to the law or practice of litigation funding that practitioners should be aware of?

  • Updates and trends

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Herbert Smith Freehills is one of the world’s leading law firms. With over 3,000 lawyers operating from an international network of 27 offices in 20 different jurisdictions, we advise many of the biggest and most ambitious organisations.

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Hong Kong
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