Settlements and Trial Control in Third Party Litigation Funding: The European Context

Abstract: Third-party litigation funding (TPLF) has emerged as a mechanism to enhance access to justice by providing financial resources to parties engaged in litigation. However, the involvement of third-party funders raises significant challenges, particularly in balancing funder influence with the plaintiff’s autonomy over settlement decisions and trial strategies. This paper examines these tensions through a comparative lens, analysing the historical influence of maintenance and champerty doctrines in common law jurisdictions and the principles of party autonomy in civil law systems. It critiques the restrictive approach of the European Commission’s TPLFD Proposal and contrasts it with the more flexible recommendations of the European Law Institute (ELI), which emphasize transparency and tailored safeguards