Over the last years, third-party financing (TPF) of litigation has received considerable attention from both legal commentators and economists. Legal commentators have mainly examined whether third-party litigation financing agreements violate the common law doctrines of maintenance and...

Because legal insurance policies cover the expenses of plaintiffs in bringing legal claims, such policies increase the risk of negligent or careless acts by tortfeasors. For this reason, potential tortfeasors would prefer to avoid injuring holders of legal insurance policies. Since insurance...

In this contribution we provide an economic approach to third party funding. We first explain why third party funding emerges. It can be considered as a remedy for the market failure that can occur in cases of so-called dispersed losses where rational apathy may occur, and also when individuals...

This article compares Third Party Financing and Legal Expenses Insurance from an economic perspective. Such a comparison deserves attention for at least two reasons. First, LEI is not particularly widespread in Europe, as is often alleged. In most European countries in which the government does...