Financing Litigious Rights
The redemption of litigious rights was regulated under the provisions of the former Civil Code, by art. 1402 – 1404, together with the sale of litigious rights. Under the new Civil Code, this institution is no longer regulated.
A litigious right refers to a right that can be exercised only after being litigated. A suit must exist for the exercise of a litigious right. The existence of a litigious right is a necessary prerequisite to a right of redemption. Under the former Civil Code, when a litigious right was assigned, the debtor was able to extinguish his obligation by paying to the assignee the price the assignee paid for the assignment, with interest from the time of the assignment. The fact that the redemption of litigious rights is no longer regulated means that the possibility to pay the amount for which the litigious right was bought, together with interests and other costs, in order to extinguish the debtor's obligation, no longer exists. The fact that it is no longer possible to extinguish litigation by paying the amount for which the litigious right was...
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