Litigation funding—Italy—Q&A guide
Litigation funding—Italy—Q&A guide

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

  • Litigation funding—Italy—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 Italy published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020).

Authors: Fideal S.R.L—Davide De Vido

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

In Italy, third-party litigation funding is permitted as an instance of application of the principle of freedom of contract as set forth in article 1322, paragraph 2 of the Civil Code, which states that: '[Parties] may... conclude contracts that do not belong to the categories that have a particular discipline, provided they are aimed at achieving interests worthy of protection according to the legal system.'

This economic-juridical operation is still largely unknown even if some legal market operators have established first relationships with litigation funds. In other words, this tool has also started to be used in Italy.

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

No, since litigation funding agreements are an expression of the freedom of contract, setting of funding fees is a matter for free bargaining.

Generally, the sum that is due to the funder is determined as a percentage of the sum actually made over to the funded party. However, the sum may be arrived at in other manners (eg, as a multiple of sums invested, as a fixed fee, etc).

3. Are there any specific legislative or regulatory

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