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 New Hampshire, 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. New Hampshire 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 for attorneys. Attorneys in New Hampshire are bound by the New Hampshire Rules of Professional Conduct, which may impose certain restrictions on the involvement of third parties in litigation. For example, attorneys must maintain independence and cannot share legal fees with non-lawyers. It is important for parties considering litigation funding to ensure that any agreements are in compliance with these broader legal and ethical standards.