Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018

10 Third party funding of civil litigation

(1) This section applies where a party to civil proceedings receives financial assistance in respect of the proceedings from another person (whether directly or through an intermediary) who is not a party to the proceedings (“the funder”).

(2) The party receiving financial assistance must disclose to the court—

(a) if known to the party, the identity of the funder and any intermediary, and

(b) the nature of the assistance being provided.

(3) If the funder has a financial interest in respect of the outcome of the proceedings—

(a) the party receiving the assistance must disclose that interest to the court once the substantive issues in dispute in the proceedings have been decided or otherwise resolved, and

(b) the court may make an award of expenses against the funder and any intermediary.

(4) Subsection (3) does not apply where the assistance is provided—

(a) under a success fee agreement (within the meaning of section 1),

(b) by a trade union or similar body which represents the interests of workers.

(5) This section does not apply where the assistance is provided in respect of family proceedings by—

(a) the spouse or civil partner of the party receiving the assistance,

(b) a person living with the party as if they were married to each other,

(c) a parent of the party,

(d) a child of the party,

(e) a sibling of the party (whether of the full-blood or of the half-blood).

(6) For the purposes of this section—

• “family proceedings” has the same meaning as in section 135 of the Courts Reform (Scotland) Act 2014,

• “financial assistance” does not include a payment from the Scottish Legal Aid Fund.

(7) This section is subject to an act of sederunt under section 103(1) or 104(1) of the Courts Reform (Scotland) Act 2014.