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 Idaho, 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, court costs, and expert witness fees. This funding is typically provided in exchange for a portion of the proceeds from the settlement or judgment. Idaho 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 cases with litigation funding must adhere to ethical rules regarding client confidentiality, conflict of interest, and control over the case. It is important for parties considering litigation funding to consult with an attorney to understand the implications and ensure that any funding agreement is in compliance with applicable laws and ethical standards.