Delaware’s Chief Judge Issues Third-Party Funding Standing Order
A standing order has been issued by Delaware’s Chief Judge, the Honorable Colm F. Connolly, calling for all cases under his supervision that engage third party investment to submit specific agreement details to his bench within the next 45 days. Judge Connolly defines third party funding as any agreement that has been organized on a non-recourse basis in exchange for a share of damage award proceeds. The order states that Judge Connolly is requiring notice of the third party funder’s identity, address and place of formation (if a legal entity). Judge Connolly is also requiring any information concerning whether funders have a stake in determining the outcome of a case under his supervision. Similarly, Judge Connolly is seeking disclosure concerning the nature of the funding agreement, specific to monetary arrangement. In other news, Litigation Finance Journal recently reported that Delaware’s Supreme Court issued guidance that allows litigation funding agreements to begin to include provisions for the losing parties’ financial responsibility in covering some (if not all) of the case costs.
