Select your state

Civil litigation

litigation funding

Litigation funding—also known as litigation financing or third-party litigation funding (TPLF)—provides a person or entity with the money to pay attorney fees, expert witnesses, and other costs necessary for litigation. Litigation funding is essentially a loan, secured by the proceeds of the expected settlement or collection of judgment in a lawsuit, and is designed to allow persons or entities without the necessary resources to pursue valid claims in litigation.

In Alabama, litigation funding, also known as third-party litigation funding (TPLF), is a practice where a third party provides financial assistance to a litigant to cover legal expenses such as attorney fees and expert witness costs. This funding is typically non-recourse, meaning that the funder will only be repaid from the proceeds of a settlement or judgment if the litigation is successful. Alabama does not have specific statutes directly regulating litigation funding for general civil litigation. However, the practice must comply with general state laws on contracts, lending, and professional conduct. Attorneys involved in litigation funding arrangements must adhere to ethical rules, including those related to conflicts of interest, confidentiality, and the control of litigation. It is important for parties considering litigation funding in Alabama to consult with an attorney to ensure that any funding agreement is in compliance with applicable laws and ethical standards.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Civil litigation

litigation funding

Individual & Family Legal Plan

Articles

Alabama State Code

Alabama State Code

Civil litigation

litigation funding

Articles