Contributed By Pérez-Llorca
In the Spanish legal system, litigation funding is permitted with no restrictions, but it has not yet been specifically regulated. Litigation funds arrived to the Spanish market very recently.
All kind of lawsuits are available for third party funding, but litigation funds that are already established are focused on arbitration and commercial litigation cases.
Even though resorting to third party funding is more common for plaintiffs, defendants can also seek to fund a counterclaim or their defence against the plaintiff.
There is no pre-established minimum and maximum amount, which leaves the decision of funding a certain claim up to the third party funder, who decides on the basis of their commercial interests. Many of the litigation funds require a minimum amount of between EUR8 and EUR10 million.
A third party funder can consider funding all legal fees required to pursue a claim before the court, such as lawyer, court agent, and expert fees, in addition to all necessary expenses incurred during the proceedings as well as the other party’s expenses in the event that there is an award on costs.
Lawyers’ fees may be agreed on a contingency basis, and Spanish law does not restrict this in any way. However, it is not common to agree on contingency fees except in labour cases, where it is the usual practice.
There are no time limits for obtaining third party funding.