Doug Fenton comments in Law.Com’s international edition on the recent decision by the Supreme Court of Canada in Québec v. Callidus Capital. The Supreme Court ruled that litigation finance could be used for claims against third parties in insolvency proceedings.
“The actual issue before the Supreme Court was very narrow,” said Douglas Fenton, a lawyer with Bennett Jones in Toronto whose paper on litigation financing was cited by the top court.
Fenton noted that the judges did not address the enforceability of litigation funding agreements more generally.
“In my own view, it’s a bit of a missed opportunity. It would have been helpful to articulate a framework for the approval of these agreements.”
But he said the decision shows the Supreme Court is signaling that litigation financing is “here to stay.”