An Introduction to Third-Party Litigation Funding in Finland : A Literature Review of the Legal Context and Feasibility of Litigation Investment Oy
Manninen, Tiia Karoliina (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024052917679
https://urn.fi/URN:NBN:fi:amk-2024052917679
Tiivistelmä
Third-party litigation funding (TPLF) has emerged as a rapidly growing asset class, particularly in common law jurisdictions. However, its presence in the Finnish civil law system has remained unexplored. The practice of TPLF involves acquiring legal claims and pursuing them through settlement or court proceedings, and holds potential implications for enhancing access to justice and providing financial support to distressed companies and individuals.
The aim of this research was to analyse the legal feasibility and considerations surrounding the introduction of TPLF in the field of bankruptcies in Finland. The objectives were to evaluate the compatibility of the existing Finnish legal framework and proposed business model of the commissioner, Litigation Investment Oy, to develop an understanding of the legal framework, and explore the potential challenges, opportunities, and ethical dimensions in establishing a TPLF business in the Finnish market.
A systematic literature review and qualitative content analysis were used as the implementation methods. Relevant legal texts, including legislation, case law, and scholarly publications, were retrieved, analysed, and coded. The research results provided insights into the legal framework and considerations surrounding TPLF in Finland.
While the existing legal framework does not explicitly prohibit TPLF practice, areas requiring clarification and potential amendments were identified. These include the authority of creditors' meetings, the requirements for purchasing bankruptcy estates, conflicts of interest, ethicality, and contractual terms. The analysis also highlighted potential implications, opportunities, and challenges associated with introducing TPLF, from addressing societal and cultural perceptions to exploring market expansion.
In conclusion, the research offers an in-depth analysis of the feasibility and legal considerations of TPLF in Finland in the context of bankruptcies, contributing to understanding of TPLF within the context of civil law. Recommendations were provided for the commissioner regarding legal frameworks, and strategies for ethical implementation. While challenges remain, the findings suggest that the responsible introduction of TPLF can enhance justice, support distressed businesses, and alleviate the stigma of bankruptcy in Finland.
The aim of this research was to analyse the legal feasibility and considerations surrounding the introduction of TPLF in the field of bankruptcies in Finland. The objectives were to evaluate the compatibility of the existing Finnish legal framework and proposed business model of the commissioner, Litigation Investment Oy, to develop an understanding of the legal framework, and explore the potential challenges, opportunities, and ethical dimensions in establishing a TPLF business in the Finnish market.
A systematic literature review and qualitative content analysis were used as the implementation methods. Relevant legal texts, including legislation, case law, and scholarly publications, were retrieved, analysed, and coded. The research results provided insights into the legal framework and considerations surrounding TPLF in Finland.
While the existing legal framework does not explicitly prohibit TPLF practice, areas requiring clarification and potential amendments were identified. These include the authority of creditors' meetings, the requirements for purchasing bankruptcy estates, conflicts of interest, ethicality, and contractual terms. The analysis also highlighted potential implications, opportunities, and challenges associated with introducing TPLF, from addressing societal and cultural perceptions to exploring market expansion.
In conclusion, the research offers an in-depth analysis of the feasibility and legal considerations of TPLF in Finland in the context of bankruptcies, contributing to understanding of TPLF within the context of civil law. Recommendations were provided for the commissioner regarding legal frameworks, and strategies for ethical implementation. While challenges remain, the findings suggest that the responsible introduction of TPLF can enhance justice, support distressed businesses, and alleviate the stigma of bankruptcy in Finland.