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 Delaware, 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. Delaware does not have specific statutes directly regulating litigation funding for commercial litigation; however, the practice is generally permitted and governed by common law principles and contract law. It is important for parties entering into a litigation funding agreement in Delaware to ensure that the agreement complies with ethical rules regarding attorney-client privilege, control over the litigation, and the prohibition against champerty and maintenance, which historically referred to the prohibition of third-party involvement in litigation but has been largely eroded in modern legal contexts. As with any financial agreement, it is advisable to consult with an attorney to navigate the complexities of litigation funding agreements.