Litigation Funding and Work Product / Common Interest Doctrines
It’s well known that information loses its attorney-client privilege when shared with a third party. Increasingly, however, rulings are allowing for documents and exchanges shared with third-party legal funders to be protected. Rimon Law explains that confidentiality can be maintained with legal funders under either the common interest doctrine or the work product doctrine. The work product doctrine exception would include information assembled as part of trial prep, or for another party such as a consultant or insurer. Recent rulings have expanded this to include strategy and mental impressions from involved parties. This can logically be applied to litigation funders, as they vet cases on the basis of potential for success, merit, and the defendant’s ability to pay. In Miller UK Ltd v Caterpillar Inc, the court ruled that confidential documents are shared with potential funders, and it would be counter to the interests of justice for clients to lose their right to privilege simply to acquire funding. The common interest doctrine is not applied across the board—and some courts have ruled pointedly against it. But more and more courts are recognizing that information shared with litigation funders is protected, because the third party in question has a common interest with the client. In In Re Intern. Oil Trading Company LLC, a case in US Bankruptcy Court in the Southern District of Florida, the court ruled that sharing information with funders is ‘an essential element to the exception to the general rule’. Ergo, the funder’s involvement in the case depends on an assessment of that case—and sharing that information should not end attorney-client privilege.