Litigation Funding Gaining Popularity in Germany
It looks like litigation funding has spread to another country in Europe. Since making a foothold in places like Australia, New Zealand, and the United Kingdom, litigation funding seems to be gaining popularity in Germany. Despite this fact, a report by CDR News discusses the October 2011 exit of AllianzProzessFinanz, who used to be one of Germany’s largest litigation funders.
According to the report, the company’s litigation funding sector was beginning to overtake other parts of their business, which was a big reason for their exit. There were also questions of conflicts of interest.
Germany is dominated by three litigation funding companies, and the exit of Allianz leaves a huge gap in the market which their competition will seek to take over.
Partly the reason for Germany not having a bigger litigation funding sector is the structure of its law and other societal benefits that Germans enjoy, such as before-the-event legal costs insurance. According to many analysts, Germany’s litigation funding sector will not explode, but continue to grow at a steady pace.
About the Author:
Lulaine Compere is a research analyst and writer for RD Legal, a post-settlement litigation financing company based out of Cresskill, New Jersey.