2016 has seen the Irish High Court address the status of third-party litigation funding, and has struck a blow to funders seeking to service the Irish market by declaring it unlawful.

The Court’s judgment was handed down in April in the case of Persona Digital Telephony Ltd v The Minister for Public Enterprise.

Trouble in the Emerald Isle

On 1st April 2016, the exemption for insolvency litigation from the changes brought about by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), was withdrawn. Prior to this, an Insolvency Practitioner (IP) could pursue action against a “rogue” director or debtor, on behalf of the creditors of an insolvent business/individual, by instructing a solicitor on a Conditional Fee Agreement (CFA), and protect themselves against adverse costs by taking out After The Event insurance (ATE).