Are Litigation Funding Documents Protected From Discovery?

By Michele Slachetka, Christian Plummer and Justin Maleson (April 22, 2020, 4:26 PM EDT) -- In recent weeks, COVID-19 has resulted in statewide shutdowns, court closures and delays, and widespread uncertainty across the business community and legal industry. Litigation funders, conversely, are experiencing a spike in inquiries from law firms (and their clients) interested in exploring the possibility of using funding to hedge risk and add balance sheet stability to help combat the unpredictability.

For attorneys new to litigation funding, many of the initial and most common questions relate to the discoverability and protection of materials shared with a funder. For example, are documents shared with a funder discoverable? Does disclosure waive privilege? Is work product...

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