Litigation financing in Bolivia: access to justice in a challenging environment
Third-party litigation funding is an increasingly utilized tool globally to facilitate access to justice, especially in contexts where costs, process duration, or asymmetry between parties can discourage even the most legitimate claims. In Bolivia, where judicial processes are often lengthy and complex, this model represents an innovative alternative for companies, individuals, and lawyers seeking capital to address litigation with strong legal and economic foundations.
History of third party funding in Bolivia
Unlike other more developed jurisdictions in this area, third party funding in Bolivia is a recent phenomenon. There is no consolidated tradition or a specific industry dedicated exclusively to litigation financing. However, in recent years, isolated experiences have begun to emerge, mainly driven from abroad or through regional initiatives focused on arbitrations or litigations with an international component. What does exist in Bolivia —and has paved the way for the development of the model— is a growing awareness of the need for financial solutions to address prolonged or high-cost litigations. In this sense, Loopa positions itself as a pioneering actor, bringing to the country a model proven in other jurisdictions and adapting it to the local reality: high litigation rates, slow processes, and the need for capital to support legitimate claims.
Legal framework: continental law and agreements between parties
The Bolivian legal system is based on the tradition of civil law or continental law, which provides a stable foundation for the development of third party funding. In this context, agreements between individuals —including those where a third party finances a lawsuit in exchange for a portion of the outcome— are valid as long as they do not contravene public order or the fundamental principles of national law. The assignment of litigation rights is permitted under the Bolivian Civil Code, and is a commonly used mechanism, for example, in debt collection or successions contexts. This allows for the structuring of financing contracts where the funder may receive a portion of the litigious credit as a way to recover their investment. Additionally, although the concept of quota litis (fees contingent on the success of the case) is not explicitly regulated, it is an increasingly common practice among lawyers in civil and commercial litigation, demonstrating a shift towards more flexible and results-oriented contractual models. Thus, the financing offered by Loopa falls within the general principles of Bolivian law, such as autonomy of will and freedom of contract, providing legal certainty to the parties involved.
Arbitration application: potential in development
Bolivia is not yet a major arbitral center compared to other regional jurisdictions, but commercial arbitration has experienced sustained growth since the enactment of the Conciliation and Arbitration Law (Law No. 708) in 2015. This law expressly recognizes the autonomy of the parties and the confidentiality of the process, two key elements for the implementation of third party funding. The National Chamber of Commerce, the Bolivian Chamber of Hydrocarbons and Energy, and other business institutions have active arbitration centers. In international arbitrations based in Bolivia or involving Bolivian parties, the practice of including funders like Loopa is fully viable, especially in high-value disputes that require resources for supporting expert opinions, hearings, and specialized legal representation. In this field, Loopa offers not only capital but also technical expertise to structure the financial strategy of the case and support the parties throughout the arbitration process.
Application in judicial disputes: monetization in lengthy processes
Judicial processes in Bolivia, especially in civil, commercial, and administrative matters, tend to be lengthy and complex. In disputes against the State or in claims with multiple appeals, deadlines can easily exceed five years. This situation represents a significant obstacle for claimants with urgent liquidity needs or limited financial capacity to sustain prolonged litigation. In this context, Loopa proposes a concrete solution: monetizing the claim. This means advancing part of the economic value of the litigation, allowing the claimant to have access to resources before the trial concludes. This strategy not only reduces financial pressure but also strengthens the negotiating position of the funded party, especially against debtors who use dilatory tactics as a defense mechanism. In Bolivia, where many companies and individuals are forced to abandon their claims due to lack of resources, litigation financing becomes an empowerment tool: a way to make justice more accessible and effective, even in a system with structural challenges.
Conclusion: opening access to justice in Bolivia
Bolivia faces significant challenges in terms of judicial efficiency and equitable access to justice. In this scenario, third-party litigation funding emerges as a legitimate and necessary tool to level the playing field. Loopa, as a specialized fund with international experience, brings to the country a proposal adapted to the local legal framework, serving lawyers, companies, and claimants with strong but financially unavailable claims. Whether in growing arbitrations, complex commercial disputes, or prolonged judicial litigations, the Loopa model allows for transforming a right from an expectation into a tangible, monetizable asset with professional support. Because no meritorious case should go unanswered due to lack of resources.
