As LFJ reported last week, we are seeing more and more evidence that litigation funding is becoming more widely adopted in Italy and is being put forward as a capital solution for a wide range of litigation across the public and private sector. A new article looks at the potential future for the litigation financing market in Italy, examining what sectors would benefit most from its adoption and how the market may be helped by legislative reforms.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
As LFJ reported last week, we are seeing more and more evidence that litigation funding is becoming more widely adopted in Italy and is being put forward as a capital solution for a wide range of litigation across the public and private sector. A new article looks at the potential future for the litigation financing market in Italy, examining what sectors would benefit most from its adoption and how the market may be helped by legislative reforms.
A blog post on HUB | Area Centro Meridionale’s LinkedIn, provides analysis on this topic by Daniela Saitta, president of LFAA (Litigation and Financing Arrangement Advisory) and Stefano Previti, managing partner of Studio Previti and founder of LFAA.
Saitta and Previti highlight bankruptcy proceedings as one of the biggest areas which could benefit from a growth in litigation funding in Italy, stating that there are around 100,000 ongoing insolvency proceedings in the country. They also point to litigation areas such as international arbitration, banking and finance disputes, and compensation claims as potential beneficiaries of third-party funding.
Looking at the effect of legislative reforms that could pave the way for an increase in litigation finance usage, the authors highlight two decrees which reformed the civil process and worked to simplify judicial activity in order to increase efficiency and reduce case duration. Saitta and Previti point out that if these decrees are successful in reducing the duration of proceedings to match the standards in other European jurisdictions, cases in Italy may become more attractive to litigation funders.
