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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."
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
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
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
Financial Services
Insurance
Construction
Mining and Resources
Manufacturing
Healthcare
Technology
Real Estate
Professional Services
Retail and Consumer
Energy
Infrastructure
Environmental Services
Transportation and Logistics
Legal
Finance
Risk Management
Compliance
Commercial
Corporate Governance
Investment
Operations
Business Development
Strategy
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
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