Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Third-Party Litigation Funding

  • Myriam Doriat-DubanEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_681



Third-party litigation funding allows the transfer by the plaintiff of his/her legal costs to a financial company whose sole aim is to make profit. TPLF have an impact on access to justice but also on conflict resolution and finally on social well-being. The aim is to show how law and economics scholars invest this new field of the conflict literature and study the role of this new actor in the litigation.


Third-party litigation funding (TPLF) is a financial activity that consists in an investment company specialized in the financing of litigation agreeing to cover all or part of the trial costs of a litigant, in exchange for a portion of the damages paid if the case is won. The remuneration of the funding third party can be a multiple of the initial investment (1.5–6 times), a percentage of the award obtained in a judgment or out-of-court settlement (20–40%, sometimes 50%), or a...

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© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of Economics, BETA UMR 7522Université de LorraineNancyFrance