NZSC Provides Guidance On Litigation Funding Agreements

The New Zealand Supreme Court rendered an interesting decision on litigation funding agreements, more specifically on the extent to which they may be invalid based on abuse of process. Litigation funding agreements are a big issue in Canada right now, particularly in the context of class actions.

Background

In Waterhouse v. Contractors Bonding Limited ([2013] NZSC 89) the Supreme Court of New Zealand considered whether the plaintiffs should be ordered to disclose a litigation funding agreement under the abuse of process principles.

Decision

The New Zeland Supreme Court stated that it is not the role of...