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Litigation Funding Agreement
"I need a Litigation Funding Agreement for a construction dispute in the DIFC courts, with a staged funding commitment of AED 5 million, including provisions for after-the-event insurance and a success fee of 30% of recoveries."
1. Parties: Identification of the Funder, the Funded Party (Claimant), and any other relevant parties
2. Background: Recitals explaining the context of the litigation and funding arrangement
3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and interpretation rules
4. Funding Commitment: Details of the funding amount, drawdown conditions, and funding schedule
5. Return on Investment: Structure of the Funder's return, including success fees and priority of payments
6. Conditions Precedent: Prerequisites that must be satisfied before funding obligations commence
7. Representations and Warranties: Statements of fact and assurances from both parties
8. Obligations of the Funded Party: Duties and responsibilities of the Funded Party during the litigation
9. Control and Conduct of Proceedings: Decision-making rights and consultation requirements regarding the litigation
10. Legal Representatives: Appointment and role of legal representatives
11. Confidentiality and Privilege: Protection of confidential information and legal privilege
12. Termination: Circumstances and process for terminating the agreement
13. Anti-Money Laundering Compliance: AML obligations and compliance requirements under UAE law
14. Governing Law and Jurisdiction: Choice of UAE law and jurisdiction specifications
15. General Provisions: Standard boilerplate clauses adapted for UAE requirements
1. Sharia Compliance: Required when the agreement needs to comply with Islamic finance principles
2. Security Arrangements: Optional section for when security is required for the funding arrangement
3. Insurance: Details of any after-the-event insurance arrangements
4. Project Management: Required for complex cases involving multiple parties or claims
5. Cross-Border Provisions: Required when litigation involves multiple jurisdictions
6. Third Party Rights: Required when rights are granted to persons who are not parties to the agreement
7. Force Majeure: Optional provisions for unforeseen circumstances affecting the litigation
1. Schedule 1 - The Claim: Detailed description of the funded claim or proceedings
2. Schedule 2 - Funding Amount and Drawdown Schedule: Detailed breakdown of the funding commitment and payment schedule
3. Schedule 3 - Return Calculations: Detailed methodology for calculating the Funder's return
4. Schedule 4 - Litigation Budget: Approved budget for the litigation
5. Schedule 5 - Legal Representatives: Details of appointed legal team and terms of engagement
6. Schedule 6 - AML Documentation Requirements: List of required AML documentation and compliance procedures
7. Schedule 7 - Conditions Precedent Checklist: Detailed list of conditions to be satisfied
8. Appendix A - Power of Attorney: Form of power of attorney if required
9. Appendix B - Form of Notice: Standard forms for various notices under the agreement
Authors
Financial Services
Construction
Real Estate
Energy
Maritime
Insurance
Technology
Healthcare
Manufacturing
Infrastructure
Professional Services
International Trade
Legal
Finance
Compliance
Risk Management
Corporate Governance
Operations
Claims Management
Investment
Corporate Affairs
Dispute Resolution
Chief Legal Officer
General Counsel
Legal Director
Head of Litigation
Chief Financial Officer
Risk Manager
Compliance Officer
Corporate Secretary
Legal Operations Manager
Claims Manager
Dispute Resolution Counsel
Investment Manager
Chief Risk Officer
Head of Corporate Affairs
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