Litigation funding—Belgium—Q&A guide
Litigation funding—Belgium—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Litigation funding—Belgium—Q&A guide
  • 1. Is third-party litigation funding permitted? Is it commonly used?
  • 2. Are there limits on the fees and interest funders can charge?
  • 3. Are there any specific legislative or regulatory provisions applicable to third-party litigation funding?
  • 4. 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. May third-party funders insist on their choice of counsel?
  • 7. May funders attend or participate in hearings and settlement proceedings?
  • 8. Do funders have veto rights in respect of settlements?
  • 9. In what circumstances may a funder terminate funding?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to litigation funding in Belgium published as part of the Lexology Getting the Deal Through series by Law Business Research (published: October 2020).

Authors: Nivalion AG—Isabelle Berger-Steiner

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

So far, the admissibility of third-party litigation funding has never been reviewed by the Belgian courts, which creates an uncertainty detrimental to its development. However, it is commonly accepted by legal scholars and practitioners that third-party litigation funding is valid and permitted under Belgian law.

Nevertheless, the use of third-party litigation funding has remained relatively limited, which might be because its admissibility has not yet been judicially confirmed. Moreover, the costs of Belgian judiciary proceedings are relatively low compared to the legal costs incurred in other jurisdictions. Similarly, the proceeds resulting from litigation or arbitration proceedings under Belgian law tend to be lower than in other—particularly common law—jurisdictions, since concepts such as punitive damages are not available under Belgian law. Consequently, third-party litigation funders have shown a relatively modest interest in the Belgium market so far, which prevented litigants from making vast use of third-party litigation funding.

2. Are there limits on the fees and interest funders can charge?

There are no specific rules regarding the acceptable amount of the funder’s return. As a general rule, the funder’s profit should not exceed the litigant’s share

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