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Litigation Funding Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

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."

Document background
The Litigation Funding Agreement is a crucial document used when a party seeks external funding to pursue legal claims in the UAE. This agreement is particularly relevant in complex commercial disputes where significant litigation costs are anticipated. It establishes the relationship between the funder and the funded party, detailing the funding commitment, success fee arrangements, and control mechanisms. The document must comply with UAE legal requirements, including both civil law and Sharia principles where applicable, and can be structured for use in UAE onshore courts, the Dubai International Financial Centre (DIFC), or Abu Dhabi Global Market (ADGM). The agreement addresses key aspects such as funding drawdown conditions, return calculations, termination rights, confidentiality obligations, and dispute resolution mechanisms, while ensuring compliance with UAE's regulatory framework, including anti-money laundering regulations and legal profession rules.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Financial Services

Construction

Real Estate

Energy

Maritime

Insurance

Technology

Healthcare

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Infrastructure

Professional Services

International Trade

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Governance

Operations

Claims Management

Investment

Corporate Affairs

Dispute Resolution

Relevant Roles

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

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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