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Litigation Funding Agreement for Nigeria

Litigation Funding Agreement Template for Nigeria

This document establishes the terms and conditions under which a third-party funder provides financial support for litigation proceedings in Nigeria. It details the funding arrangement, including the amount of funding, conditions for disbursement, return calculations, and risk allocation between the parties. The agreement is structured to comply with Nigerian law and addresses key aspects such as confidentiality, control of litigation, settlement parameters, and termination rights. It includes specific provisions for cost protection, adverse costs coverage, and reporting requirements, while ensuring alignment with Nigerian civil procedure rules and professional conduct regulations.

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Litigation Funding Agreement

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What is a Litigation Funding Agreement?

A Litigation Funding Agreement is essential when a party seeks third-party funding to pursue or defend legal proceedings in Nigeria. This document becomes relevant when a party has a meritorious claim but lacks the financial resources to pursue litigation, or wishes to manage litigation risk and cash flow. The agreement comprehensively addresses funding terms, return structures, control mechanisms, and risk allocation, while ensuring compliance with Nigerian legal requirements and professional conduct rules. It is particularly important in complex commercial disputes where litigation costs may be substantial. The document typically includes detailed provisions about funding drawdown, success fees, settlement procedures, and termination rights, with specific attention to Nigerian jurisdictional requirements and court procedures.

What sections should be included in a Litigation Funding Agreement?

1. Parties: Identifies the Funder, the Funded Party (claimant/defendant), and any other relevant parties such as the legal representatives

2. Background: Sets out the context of the litigation and the purpose of the funding arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Funding Commitment: Details the amount of funding, drawdown conditions, and funding schedule

5. Returns to Funder: Specifies how the litigation proceeds will be shared and the funder's return calculation

6. Conditions Precedent: Lists conditions that must be met before the funding obligation becomes effective

7. Warranties and Representations: Sets out warranties given by the funded party regarding the claim and their circumstances

8. Conduct of the Litigation: Establishes parameters for managing the litigation, including settlement authority

9. Costs and Adverse Costs: Addresses responsibility for legal costs and potential adverse costs orders

10. Confidentiality: Sets out confidentiality obligations regarding the agreement and the litigation

11. Termination: Specifies circumstances under which the agreement can be terminated and consequences

12. Dispute Resolution: Establishes mechanism for resolving disputes between parties to the funding agreement

13. General Provisions: Standard contractual provisions including notices, amendments, and governing law

What sections are optional to include in a Litigation Funding Agreement?

1. Priority and Waterfall: Required when there are multiple funders or complex distribution arrangements

2. Cross-Border Provisions: Needed when the litigation involves multiple jurisdictions or foreign enforcement

3. Insurance: Required when after-the-event insurance is part of the funding arrangement

4. Portfolio Funding Terms: Needed when funding multiple cases under the same agreement

5. Security Arrangements: Required when the funder requires security over the claim or proceeds

6. Regulatory Compliance: Needed when specific regulatory requirements apply to the funding arrangement

7. Project Management: Required for complex cases requiring specific project management provisions

What schedules should be included in a Litigation Funding Agreement?

1. Schedule 1 - The Claim: Detailed description of the funded litigation

2. Schedule 2 - Funding Schedule: Detailed breakdown of the funding commitment and drawdown schedule

3. Schedule 3 - Budget: Approved litigation budget including counsel fees and other costs

4. Schedule 4 - Return Calculations: Detailed methodology for calculating the funder's return

5. Schedule 5 - Lawyers' Terms of Engagement: Terms of engagement with the legal team

6. Schedule 6 - Reporting Requirements: Format and frequency of progress reports

7. Schedule 7 - Key Personnel: List of key contacts and their roles for all parties

8. Appendix A - Power of Attorney: If required, powers granted to specific parties

9. Appendix B - Form of Notice: Standard forms for various notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions




















































Clauses











































Relevant Industries

Financial Services

Insurance

Mining

Oil & Gas

Construction

Manufacturing

Technology

Real Estate

Banking

Healthcare

Telecommunications

Infrastructure

Maritime

Aviation

Professional Services

Relevant Teams

Legal

Finance

Risk Management

Compliance

Corporate Secretariat

Operations

Investment

Claims

Dispute Resolution

Corporate Affairs

Relevant Roles

General Counsel

Legal Director

Chief Financial Officer

Risk Manager

Compliance Officer

Litigation Manager

Legal Operations Manager

Company Secretary

Chief Executive Officer

Investment Manager

Claims Manager

Contract Manager

Finance Director

Corporate Counsel

Litigation Counsel

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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