Litigation Funding Agreement Template for Germany

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Key Requirements PROMPT example:

Litigation Funding Agreement

"I need a Litigation Funding Agreement under German law for funding a commercial patent dispute, with a funding commitment of €2.5 million and specific provisions for technical expert costs and potential cross-licensing outcomes."

Document background
The Litigation Funding Agreement serves as the primary contractual framework for third-party funding arrangements in German legal proceedings. It is used when a party requires external funding to pursue litigation or arbitration, typically in high-value commercial disputes. The agreement comprehensively addresses all aspects of the funding relationship, including due diligence requirements, funding commitments, success fee calculations, control rights, and reporting obligations. Structured to comply with German legal requirements, including the Civil Code (BGB), Legal Services Act (RDG), and data protection laws, this document type has become increasingly important as litigation funding gains prominence in the German legal market. The agreement typically includes detailed provisions for case management, risk allocation, and termination rights, while maintaining the independence of legal representation as required under German law.
Suggested Sections

1. Parties: Identification of the Funder and the Funded Party (and potentially other relevant parties)

2. Background: Context of the litigation and purpose of the funding arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Scope of Funding: Details of what the funding covers, including type of legal proceedings and jurisdiction

5. Funding Amount and Disbursement: The agreed funding amount, drawdown mechanisms, and conditions for disbursement

6. Returns and Success Fee: Calculation and payment of the funder's return, including success fee structure

7. Conditions Precedent: Conditions that must be met before the agreement becomes effective

8. Representations and Warranties: Key statements and assurances from both parties

9. Obligations of the Funded Party: Commitments and responsibilities of the party receiving funding

10. Obligations of the Funder: Commitments and responsibilities of the funding party

11. Case Management and Control: Decision-making processes and control rights regarding the litigation

12. Confidentiality and Data Protection: Provisions for handling confidential information and personal data

13. Term and Termination: Duration of the agreement and circumstances for termination

14. Consequences of Termination: Effects and obligations following termination

15. Dispute Resolution: Procedures for resolving disputes between the parties

16. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Multi-Party Provisions: Additional provisions for cases involving multiple funded parties or funders

2. Insurance Arrangements: Provisions regarding After-the-Event insurance or other relevant insurance

3. Security Arrangements: Provisions for any security or collateral required by the funder

4. Cross-Border Provisions: Additional provisions for cases involving multiple jurisdictions

5. Assignment and Syndication: Provisions allowing the funder to assign or syndicate its rights

6. Third Party Rights: Provisions regarding the rights of third parties under the agreement

7. Anti-Money Laundering Compliance: Specific provisions for AML compliance where required

8. Broker/Intermediary Provisions: Provisions dealing with any intermediaries involved in arranging the funding

Suggested Schedules

1. Schedule 1 - Case Details: Detailed description of the legal proceedings being funded

2. Schedule 2 - Budget and Cost Schedule: Detailed breakdown of anticipated costs and funding requirements

3. Schedule 3 - Success Fee Calculation: Detailed methodology for calculating the success fee

4. Schedule 4 - Drawdown Procedure: Detailed process for requesting and receiving funding

5. Schedule 5 - Reporting Requirements: Format and timing of required reports

6. Schedule 6 - Key Contacts: Contact details for key personnel from all parties

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

8. Appendix B - Form of Progress Report: Template for regular progress reports

9. Appendix C - Power of Attorney: If required for specific actions by the funder

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

Banking

Manufacturing

Construction

Technology

Healthcare

Energy

Real Estate

Transportation

Retail

Professional Services

Mining and Resources

Telecommunications

Relevant Teams

Legal

Finance

Risk Management

Compliance

Investment

Operations

Business Development

Dispute Resolution

Corporate Affairs

Treasury

Relevant Roles

Chief Legal Officer

General Counsel

Legal Director

Head of Litigation

Senior Legal Counsel

Legal Operations Manager

Chief Financial Officer

Finance Director

Risk Manager

Compliance Officer

Investment Manager

Portfolio Manager

Claims Manager

Business Development Director

Contract 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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