Litigation Funding Agreement Template for Belgium

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Key Requirements PROMPT example:

Litigation Funding Agreement

"I need a Litigation Funding Agreement under Belgian law for funding a construction industry dispute, with specific provisions for multiple drawdowns and expert witness costs, including an After-the-Event insurance requirement and a success fee of 30% of the recovery amount."

Document background
The Litigation Funding Agreement is a crucial document used when a party seeks external funding to pursue legal claims in Belgium. This agreement type has become increasingly important as litigation funding gains acceptance in the Belgian legal landscape, offering businesses and individuals access to justice without upfront financial burden. The document establishes the relationship between the funder and funded party, detailing funding commitments, success fee calculations, control mechanisms, and risk allocation. It must comply with Belgian civil law, financial regulations, and the specific requirements of the Belgian Bar Association regarding third-party funding. The agreement typically includes comprehensive provisions for confidentiality, data protection, and dispute resolution, while respecting the independence of legal counsel as required under Belgian professional rules.
Suggested Sections

1. Parties: Identification of the Funder and the Funded Party, including full legal names and addresses

2. Background: Context of the litigation, purpose of the funding arrangement, and brief description of the underlying claim

3. Definitions: Definitions of key terms used throughout the agreement, including 'Claim', 'Proceeds', 'Success Fee', 'Adverse Costs', etc.

4. Scope of Funding: Details of what costs and expenses will be covered by the funding

5. Funding Mechanism: Process for drawdown of funds, payment procedures, and funding limits

6. Return on Investment: Calculation and payment of the funder's return, including success fee structure and priority of payments

7. Control and Conduct of Litigation: Rights and obligations regarding litigation strategy, settlement decisions, and choice of legal representatives

8. Representations and Warranties: Key statements and guarantees by both parties

9. Confidentiality and Data Protection: Obligations regarding confidential information and compliance with GDPR requirements

10. Termination: Circumstances allowing termination and consequences of termination

11. Dispute Resolution: Process for resolving disputes between the parties, including jurisdiction and applicable law

12. General Provisions: Standard contractual provisions including notices, amendments, and severability

Optional Sections

1. Anti-Money Laundering Compliance: Additional provisions for compliance with AML regulations, required when dealing with high-value claims or complex corporate structures

2. Insurance Arrangements: Provisions regarding After-the-Event insurance or other insurance requirements, needed when insurance is part of the risk management strategy

3. Security Arrangements: Details of any security granted to the funder, required when security is part of the funding structure

4. Priority and Waterfall: Detailed payment priority provisions, needed in cases with multiple funders or complex recovery structures

5. Group Litigation Provisions: Special provisions for class actions or group litigation, required when funding multiple claimants

6. Cross-Border Provisions: Additional provisions for multi-jurisdictional litigation, needed when the claim involves multiple jurisdictions

Suggested Schedules

1. Schedule 1 - The Claim: Detailed description of the funded litigation or arbitration

2. Schedule 2 - Funding Details: Specific amounts, drawdown schedule, and funding commitment details

3. Schedule 3 - Success Fee Calculation: Detailed methodology for calculating the funder's return

4. Schedule 4 - Adverse Costs Protection: Details of adverse costs coverage and related insurance arrangements

5. Schedule 5 - Approved Budget: Agreed litigation budget and cost projections

6. Schedule 6 - Reporting Requirements: Template reports and timing for updates to the funder

7. Appendix A - Power of Attorney: If required, form of power of attorney for specific actions

8. Appendix B - Communication Protocol: Agreed procedures for communications between parties, lawyers, and funder

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Legal Services

Financial Services

Insurance

Banking

Construction

Manufacturing

Technology

Energy

Healthcare

Real Estate

Mining

Transportation

Retail

Professional Services

Telecommunications

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Secretariat

Investment

Claims

Litigation

Legal Operations

Business Development

Contracts

Relevant Roles

Legal Counsel

Chief Legal Officer

Chief Financial Officer

Risk Manager

Compliance Officer

Finance Director

Corporate Secretary

Investment Manager

Claims Manager

Litigation Manager

Legal Operations Director

Business Development Manager

Contract Manager

General Counsel

Legal Risk Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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