Explanatory Memorandum

Justice Act (Northern Ireland) 2011

2011 CHAPTER 24

4 May 2011

Commentary on Sections

Part 7: Legal Aid, etc.

Section 85: Litigation funding agreements

This section removes the restriction on the Northern Ireland Legal Services Commission from establishing or funding services under a Litigation Funding Agreement (LFA). LFAs are a type of agreement that allows litigants to pursue money damages cases, including personal injury litigation, on the basis that they would not be liable for their legal costs if their case was unsuccessful. If a client, funded by way of an LFA, was successful then either a success fee obtained from the losing side, or a portion of the clients’ award (or both) would be paid into a fund. This fund would then help meet the cost of legal fees in unsuccessful cases.