The Ontario Superior Court of Justice recently approved for the first time a litigation funding agreement relating to a single plaintiff. The case involves a claim for a US $10 million commission against a pharmaceutical company. This decision is ground breaking because litigation funding agreements had never previously been approved in Canada outside the class actions context. Prior to this decision, it was unclear whether third party litigation funding for private litigation offended against the rules prohibiting maintenance and champerty. Adam Stephens, a partner with Miller Thomson LLP, which is counsel for the plaintiff, states: “the approval of third party funding in the Schenk action is very significant. It is the first time such funding has been approved in Canada in the context of commercial litigation. Further, it is an important decision in the ongoing movement towards greater access to justice for litigants”.
Click here to see more details on this breakthrough ruling.