Young ICCA-CIArb Workshop on Litigation Funding

Post Event Report

By Karina Riccio (Young ICCA Member and associate at Lauro Gama Advogados – Rio de Janeiro, Brazil)

The Young ICCA-CIArb Workshop on Litigation Funding was held on May 14, 2025, at HubLDCM Advogados in Rio de Janeiro, Brazil. The workshop offered a comprehensive overview of each chronological milestone in the funding decision process, including case inception, the offer to the funder, the funder's assessment, and due diligence by outside counsel.

The workshop began with introductory remarks from Bernard Potsch, FCIArb and Partner at Batista Martins Advogados, and Gustavo Kulesza, Co-chair of Young ICCA and Partner at BMA Advogados. Both gave an overview of their respective institutions and initiatives, with special emphasis on those related to Litigation Finance: the CIArb Guideline on Third-Party Funding and the ICCA-Queen Mary Report on Third-Party Funding. This was followed by a panel discussion on the Overview of Litigation Funding, featuring Fernanda Solon (Neon Pagamentos), Lucas Hermeto (Vieira Rezende Advogados), Marina Gouveia (Loopa Litigation Finance), and Lucas Mendes (Laudelino Advogados), moderated by Isabela Maté (Young ICCA Regional Representative/Lobo de Rizzo Advogados).

Ms. Solon highlighted the key benefits of litigation funding from the client's perspective, drawing on examples from her own experience in the field. She also delivered a brief presentation of the mock case that guided the workshop's discussions.

Mr. Hermeto, speaking from the perspective of the counsel proposing funding, identified the players and the main milestones in negotiating litigation funding. He recommended that the client's lawyer should (i) only offer strong cases; (ii) maintain 100% transparent; (iii) perform financial calculations (“do the maths”); (iv) prioritize funders who specialize in the genre of the case; (v) avoid bidding among funders; (vi) adopt a pro-business approach; (vii) demonstrate to the funder that there is a commitment to protecting the security of the operation; (viii) be prepared; (ix) minimize conflicts of interest; and (x) build credibility and relationships.

Ms. Gouveia, from the funder’s point of view, explained that the financing process is usually divided into three stages, where financing parameters are analyzed, such as (i) minimum ticket; (ii) expected return; (iii) duration (including the execution phase); and (iv) jurisdictional focus. She also noted the legal analysis of the case to be financed, such as the prognosis of the success of the claim, the arguments expected from the opposing party, and even the experience and reputation of the team defending each of the parties.

Mr. Mendes concluded the panel by introducing the perspective of the counsel who reviews the funding opportunity. Using an engaging mathematical formula, which captivated the attendees, he demonstrated the calculation of the interaction between variables related to (i) legal risks (factual, jurisdictional, and meritorious); (ii) economic risks (solvency of the debtor, case loss); (iii) professional risks (quality of lawyers, alignment of interests); and (iv) time risks.

After the lectures, the speakers opened the second session: the Practical Workshop, where attendees analyzed a funding opportunity based on a mock case. Attendees received a code directing them to an online survey prepared by the panelists. Through 11 multiple-choice questions, the audience was able to test the knowledge acquired during the first session in a fun, points-based competition.