Litigation Finance Firms’ Communications Protected as Work Product

Litigation finance is growing in the U.S., but its substantive role in a case has been a bit murky, until now.

A decision from the Delaware Chancery Court makes clear that documents relating to funding provided by third parties to finance a lawsuit are entitled to the confidentiality protections afforded to more traditional lawyer work product.

“Many courts have given this issue short shrift,’' Michele DeStefano, a professor at the University of Miami School of Law , said Tuesday in an interview. “It was time for a court to take a stand and analyze work product doctrine.’'

The litigation-finance market ...