Litigation Financing Agreement Generator for Germany

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Key Requirements PROMPT example:

Litigation Financing Agreement

"I need a Litigation Financing Agreement under German law for funding a €5 million commercial dispute between a medium-sized manufacturing company and its former supplier, with a success fee of 30% and standard termination rights."

Document background
The Litigation Financing Agreement serves as the primary document governing the relationship between litigation funders and claimants in Germany. This agreement type has gained significant importance as litigation funding has become an established practice in the German legal market, offering claimants access to justice while managing financial risks. The document addresses key aspects such as funding commitments, success fees, control rights, and termination provisions, all within the framework of German civil law and regulatory requirements. It is particularly useful when claimants require external funding to pursue valid legal claims but lack the financial resources to do so. The agreement must carefully balance the interests of all parties while ensuring compliance with German legal services regulations, banking laws, and professional conduct rules. Special attention is paid to maintaining attorney independence and proper risk allocation, as required under German law.
Suggested Sections

1. Parties: Identification of the litigation funder and the funded party (claimant)

2. Background: Description of the underlying dispute, claim value, and purpose of the funding arrangement

3. Definitions: Key terms used throughout the agreement including 'Claim', 'Proceeds', 'Success Fee', 'Legal Costs'

4. Funding Commitment: Details of the funding amount, drawdown conditions, and funding schedule

5. Success Fee and Return Structure: Calculation and payment terms of the funder's return upon successful resolution

6. Claimant's Obligations: Duties of the funded party including cooperation, information sharing, and litigation conduct

7. Control and Decision-Making: Framework for making key litigation decisions and settlement approval rights

8. Costs and Expenses: Allocation of litigation costs, adverse costs, and security for costs

9. Confidentiality: Obligations regarding confidential information and permitted disclosures

10. Term and Termination: Duration of the agreement and circumstances allowing early termination

11. Representations and Warranties: Key assurances from both parties regarding capacity, information, and conflicts

12. Governing Law and Jurisdiction: Specification of German law application and dispute resolution mechanism

Optional Sections

1. AML and Compliance: Specific provisions for anti-money laundering and regulatory compliance, required when funding particularly large claims or involving regulated entities

2. Priority and Security: Provisions regarding security interests over the claim or proceeds, used when additional security is required

3. Portfolio Funding Terms: Special provisions for funding multiple claims, used in portfolio funding arrangements

4. Insurance Arrangements: Provisions regarding after-the-event insurance or other insurance requirements, included when insurance is part of the funding structure

5. Assignment and Transfer: Provisions allowing transfer of funding rights, included when the funder may want to syndicate or transfer the investment

6. Counsel and Expert Appointment: Procedures for appointing and replacing legal counsel and experts, included when the funder wants specific control rights

Suggested Schedules

1. Claim Summary: Detailed description of the funded claim including key evidence and legal basis

2. Budget and Funding Schedule: Detailed litigation budget and timeline for funding drawdowns

3. Success Fee Calculations: Detailed examples and formulas for calculating the success fee in various scenarios

4. Approved Counsel and Experts: List of pre-approved legal counsel and experts for the litigation

5. Reporting Requirements: Templates and schedules for regular reporting by the claimant

6. Due Diligence Documents: Key documents relied upon in the funding decision

7. Power of Attorney: Form of power of attorney if required for certain jurisdictions or actions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Insurance

Legal Services

Manufacturing

Construction

Technology

Healthcare

Energy

Real Estate

Mining

Transportation

Retail

Professional Services

Telecommunications

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Corporate Development

Litigation

Investment

Operations

Strategy

Relevant Roles

Chief Legal Officer

General Counsel

Legal Director

Chief Financial Officer

Finance Director

Risk Manager

Compliance Officer

Litigation Manager

Investment Manager

Claims Manager

Corporate Counsel

Legal Operations Manager

Treasury Manager

Business Development Director

Portfolio Manager

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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