Kiri

The European Law Institute AISBL/IVZW | Reg No 0837 276 779

Rue Ducale 1 Hertogstraat – KVAB

Bruxelles 1000 Brussel – BELGIUM

P +43-1-4277-221-01

F +43-1-4277-9221

ELI President and Vices

Schottenring 16 | 1010 Vienna | Austria

[email protected]

www.europeanlawinstitute.eu

P +43-1-4277-221-01

F +43-1-4277-9221

Vienna, 19 December 2024

Dear Minister Pakosta

We have the great pleasure of extending a formal invitation to you to participate in the invitation-only European

Law Institute (ELI) High Level Forum on Principles Governing the Third Party Funding of Litigation (TPLF), which

will take place online on 19 February 2025 from 16:30–18:00 CET.

The High Level Forum, which will be opened by Mr Andreas Stein, Head of Unit responsible for civil justice at the

European Commission's Directorate General for Justice, will provide the opportunity to discuss the recently

published ELI Principles Governing the Third Party Funding of Litigation, available here. These comprehensive

Principles aim at providing essential guidance for litigants, funders, legal advisors, and regulatory bodies involved

in TPLF agreements. Developed in response to the rapidly expanding global TPLF market, the Principles seek to

enhance transparency, fairness, and accessibility in litigation funding. The ELI encourages jurisdictions to

incorporate these Principles – which provide a flexible framework – into legislation or regulation to ensure

effective enforcement.

The Principles are the final outcome of the ELI project on Third Party Funding of Litigation led by Co-Reporters,

Dame Sara Cockerill, Judge of the High Court of England and Wales, Judge in Charge of the Commercial Court

2020–2022 and Prof Mag Susanne Augenhofer, Professor, Universität Innsbruck, Senior Research Scholar in Law

and Visiting professor, Yale Law School. It was driven by the rapid expansion of the TPLF industry, with projections

estimating the market size to surpass US$35 billion by 2035, by one account.

A key issue behind a call for regulation in this field is the transparency deficit and the knowledge imbalance

between funders and funded parties, particularly consumers. Consistent concerns across jurisdictions involve

information asymmetry and power imbalances during TPLF agreement negotiations. While focused on the

principles and practices essential for the European TPLF market, the Principles acknowledge that these issues are

not confined to Europe alone and aim for a framework that resonates globally and supports fair litigation funding

practices worldwide.

Four core objectives for effective TPLF – facilitating access to justice, addressing valid TPLF concerns, levelling the

international playing field, and informing regulatory or legislative responses – offered guidance in the drafting of

the resulting core Principles which cover Promotional Materials, Transparency, Avoidance and Management of

Conflicts of Interest, Capital Adequacy of Funders, Funders’ Fees, Confidentiality, Case Management (Control),

Termination of Third Party Funding Agreements, and Dispute Resolution and Review by Courts or other

Authorities. These Principles are accompanied by general provisions (covering subject matter and purpose, scope

and definitions) as well as an appendix on the recommended minimum content required in TPLF agreements. The

The European Law Institute AISBL/IVZW | Reg. No. 0837 276 779

Rue Ducale 1 Hertogstraat – KVAB

Bruxelles 1000 Brussel – BELGIUM

Report also provides insights into specific types of proceedings, namely consumer litigation, insolvency

proceedings, arbitration, and crowdfunding of litigation. It further explores related concepts like Damages Based

Agreements (DBAs) and Conditional Fee Agreements (CFAs), where the legal representative's remuneration

depends on the litigation's outcome, as well as insurance.

We would be greatly honoured if you were to accept our invitation to be involved in the above event. Should you

perhaps not be able to participate, we invite you to nominate a representative

We look forward to hearing from you at your earliest convenience.

The ELI Secretariat team will be in touch, should you be available, with more detailed arrangements.

Yours sincerely

Prof Dr Pascal Pichonnaz Anne Birgitte Gammeljord Sir Geoffrey Vos

ELI President ELI First Vice President ELI Second Vice President

The European Law Institute AISBL/IVZW | Reg No 0837 276 779

Rue Ducale 1 Hertogstraat – KVAB

Bruxelles 1000 Brussel – BELGIUM

P +43-1-4277-221-01

F +43-1-4277-9221

ELI President and Vices

Schottenring 16 | 1010 Vienna | Austria

[email protected]

www.europeanlawinstitute.eu

P +43-1-4277-221-01

F +43-1-4277-9221

Vienna, 19 December 2024

Dear Minister Pakosta

We have the great pleasure of extending a formal invitation to you to participate in the invitation-only European

Law Institute (ELI) High Level Forum on Principles Governing the Third Party Funding of Litigation (TPLF), which

will take place online on 19 February 2025 from 16:30–18:00 CET.

The High Level Forum, which will be opened by Mr Andreas Stein, Head of Unit responsible for civil justice at the

European Commission's Directorate General for Justice, will provide the opportunity to discuss the recently

published ELI Principles Governing the Third Party Funding of Litigation, available here. These comprehensive

Principles aim at providing essential guidance for litigants, funders, legal advisors, and regulatory bodies involved

in TPLF agreements. Developed in response to the rapidly expanding global TPLF market, the Principles seek to

enhance transparency, fairness, and accessibility in litigation funding. The ELI encourages jurisdictions to

incorporate these Principles – which provide a flexible framework – into legislation or regulation to ensure

effective enforcement.

The Principles are the final outcome of the ELI project on Third Party Funding of Litigation led by Co-Reporters,

Dame Sara Cockerill, Judge of the High Court of England and Wales, Judge in Charge of the Commercial Court

2020–2022 and Prof Mag Susanne Augenhofer, Professor, Universität Innsbruck, Senior Research Scholar in Law

and Visiting professor, Yale Law School. It was driven by the rapid expansion of the TPLF industry, with projections

estimating the market size to surpass US$35 billion by 2035, by one account.

A key issue behind a call for regulation in this field is the transparency deficit and the knowledge imbalance

between funders and funded parties, particularly consumers. Consistent concerns across jurisdictions involve

information asymmetry and power imbalances during TPLF agreement negotiations. While focused on the

principles and practices essential for the European TPLF market, the Principles acknowledge that these issues are

not confined to Europe alone and aim for a framework that resonates globally and supports fair litigation funding

practices worldwide.

Four core objectives for effective TPLF – facilitating access to justice, addressing valid TPLF concerns, levelling the

international playing field, and informing regulatory or legislative responses – offered guidance in the drafting of

the resulting core Principles which cover Promotional Materials, Transparency, Avoidance and Management of

Conflicts of Interest, Capital Adequacy of Funders, Funders’ Fees, Confidentiality, Case Management (Control),

Termination of Third Party Funding Agreements, and Dispute Resolution and Review by Courts or other

Authorities. These Principles are accompanied by general provisions (covering subject matter and purpose, scope

and definitions) as well as an appendix on the recommended minimum content required in TPLF agreements. The

The European Law Institute AISBL/IVZW | Reg. No. 0837 276 779

Rue Ducale 1 Hertogstraat – KVAB

Bruxelles 1000 Brussel – BELGIUM

Report also provides insights into specific types of proceedings, namely consumer litigation, insolvency

proceedings, arbitration, and crowdfunding of litigation. It further explores related concepts like Damages Based

Agreements (DBAs) and Conditional Fee Agreements (CFAs), where the legal representative's remuneration

depends on the litigation's outcome, as well as insurance.

We would be greatly honoured if you were to accept our invitation to be involved in the above event. Should you

perhaps not be able to participate, we invite you to nominate a representative

We look forward to hearing from you at your earliest convenience.

The ELI Secretariat team will be in touch, should you be available, with more detailed arrangements.

Yours sincerely

Prof Dr Pascal Pichonnaz Anne Birgitte Gammeljord Sir Geoffrey Vos

ELI President ELI First Vice President ELI Second Vice President