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Litigation Funding Agreement Template for New Zealand

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Key Requirements PROMPT example:

Litigation Funding Agreement

"Need a Litigation Funding Agreement for a class action lawsuit in the construction sector, with funding commitment of NZD 5 million, where our firm will be funding multiple plaintiffs seeking damages for building defects, with settlement expected by March 2025."

Document background
The Litigation Funding Agreement serves as the primary contractual framework for third-party funding of legal proceedings in New Zealand. This document is essential when a party seeks external funding to pursue litigation or arbitration but lacks the financial resources or prefers to share the litigation risk. The agreement comprehensively addresses funding arrangements, including the funder's commitment, return structures, control mechanisms, and proceeds distribution. It incorporates specific provisions required under New Zealand law and practice, while following established case law principles on litigation funding. The document is particularly relevant for complex commercial disputes, class actions, and significant claims where substantial funding is required to pursue legal proceedings effectively.
Suggested Sections

1. Parties: Identifies and defines the Funder, the Funded Party, and any other relevant parties to the agreement

2. Background: Sets out the context of the litigation and funding arrangement, including brief details of the legal proceedings and purpose of the funding

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Funding Commitment: Details the amount of funding provided, funding limits, and any conditions precedent to funding

5. Use of Funding: Specifies permitted uses of the funding and any restrictions on its application

6. Funder's Rights and Obligations: Outlines the funder's commitments, including funding provisions and information rights

7. Funded Party's Obligations: Details the funded party's responsibilities, including cooperation, information sharing, and conduct obligations

8. Legal Representatives: Defines the role and obligations of the legal representatives in the funded litigation

9. Settlement and Proceeds: Establishes processes for settlement decisions and distribution of proceeds

10. Funder's Return: Specifies the calculation and payment of the funder's return from successful proceedings

11. Termination: Sets out circumstances when the agreement can be terminated and the consequences of termination

12. Confidentiality: Establishes confidentiality obligations regarding the funding arrangement and litigation

13. Dispute Resolution: Provides mechanisms for resolving disputes between parties to the funding agreement

14. General Provisions: Contains standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Priority and Security: Used when the funder requires security over the proceeds or priority arrangements with other creditors

2. Multiple Proceedings: Required when funding covers multiple related proceedings or jurisdictions

3. Class Action Provisions: Necessary for class action litigation funding, including specific obligations regarding class members

4. Insurance: Used when specific insurance requirements are imposed on the funded party

5. Third Party Rights: Required when rights are granted to parties not directly party to the agreement

6. Expert Determination: Used when technical matters may require expert determination during the proceedings

7. Project Management: Included for complex litigation requiring specific project management provisions

8. Anti-Money Laundering Compliance: Required when additional AML/CFT compliance obligations need to be specified

Suggested Schedules

1. Schedule 1 - Defined Terms: Comprehensive list of defined terms used in the agreement

2. Schedule 2 - Funding Commitment Details: Detailed breakdown of funding amounts, tranches, and payment conditions

3. Schedule 3 - Approved Budget: Itemized budget for the funded proceedings

4. Schedule 4 - Return Calculations: Detailed methodology for calculating the funder's return

5. Schedule 5 - Legal Representatives' Terms: Key terms of engagement with legal representatives

6. Schedule 6 - Proceeding Details: Specific details of the funded proceedings including case numbers and parties

7. Appendix A - Form of Drawdown Notice: Template for requesting funding drawdowns

8. Appendix B - Reporting Requirements: Templates and requirements for regular reporting to the funder

9. Appendix C - Settlement Instructions: Procedures and authorities for settlement negotiations

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

















































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Relevant Industries

Financial Services

Insurance

Construction

Mining and Resources

Manufacturing

Healthcare

Technology

Real Estate

Professional Services

Retail and Consumer

Energy

Infrastructure

Environmental Services

Transportation and Logistics

Relevant Teams

Legal

Finance

Risk Management

Compliance

Commercial

Corporate Governance

Investment

Operations

Business Development

Strategy

Relevant Roles

Chief Legal Officer

General Counsel

Legal Director

Chief Financial Officer

Finance Director

Risk Manager

Compliance Officer

Commercial Director

Litigation Manager

Legal Operations Manager

Company Secretary

Investment Manager

Portfolio Manager

Claims Manager

Business Development Director

Industries








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