Litigation funding in Italy: modern solutions in a historical jurisdiction
Italy, with one of the most influential legal traditions in Europe, has a broad, complex, and highly normativized judicial system. Although third party funding is still an emerging model in the country, its adoption is steadily growing, especially in arbitrations, international commercial disputes, and high-value litigation. In this context, Loopa positions itself as a strategic player to accompany the evolution of the model in Italy, providing capital, international experience, and legal solutions tailored to a transforming environment.
History of third party funding in Italy
For a long time, the Italian legal system maintained a conservative stance towards litigation funding. The figure of the external funder was not explicitly provided for and was viewed with suspicion, both for cultural reasons and due to the strict ethical limits applicable to the legal profession. However, in recent years, this perception has begun to change. Driven by the globalization of legal services, the increase in international arbitration based in Milan or Rome, and the need to address the growing costs of litigation, the figure of the third party funder began to timidly integrate into the Italian legal ecosystem. Today, although there is still no specific regulation, the model is legally valid and has been used in various proceedings, especially in corporate disputes, insolvencies, and commercial arbitrations. Loopa, with a presence in multiple European jurisdictions, introduces in Italy a professional and structured proposal, capable of adapting to the particularities of its legal system while still leveraging the best international practices.
Legal framework: civil law tradition and contractual freedom
Italy is governed by a system of civil law, with the Civil Code as the backbone of its private regulations. In this framework, financing contracts entered into between a claimant and a third party are deemed valid, under the principle of autonomy of will. As long as they do not contravene imperative norms or public order, private agreements between parties can be structured freely. The assignment of litigious credits is permitted by Italian law, although subject to certain formalities and restrictions in cases of personal rights or non-pecuniary character. This figure is key to structuring the relationship between funder and client, allowing the fund to recover its investment in the event of a favorable outcome. The practice of pactum de quota litis —that is, fees conditioned on the outcome— is limited for lawyers under Italian law. However, these restrictions do not apply to third-party funders, allowing the Loopa model to operate within the Italian legal framework, without interfering with the lawyer's independence or violating ethical principles of the profession.
Arbitration application: Milan as a rising center
Italy has strengthened its positioning as a venue for international arbitrations in recent years, partly thanks to the development of the Milan Chamber of Arbitration (CAM), an institution known for its professionalism and efficiency. The CAM and other Italian arbitration institutions apply modern rules, compatible with the use of third party funding, and promote transparency in the relationship between the parties and their potential funders. Furthermore, Italian jurisprudence in arbitration matters favors the recognition of party autonomy and minimal judicial intervention, facilitating the implementation of external financing without regulatory obstacles. Loopa is able to finance arbitrations based in Italy or involving Italian parties, covering legal costs, arbitrator fees, expert expenses, technical translations, and procedural logistics. Our model allows a party with a strong case to go through the entire process without compromising liquidity or unbalancing its finances.
Application in judicial disputes: relief from lengthy and costly processes
Despite reform and digitalization efforts, the Italian judicial system continues to face structural challenges: delays, procedural congestion, and cumulative costs. In large-scale civil and commercial litigation, especially in appellate courts or higher instances, processes can last for years. In this context, the Loopa model offers a concrete solution: monetizing the litigation by advancing part of the economic value of the claim so that the plaintiff has immediate capital. This is particularly useful in cases of asset recovery, contractual disputes, professional liability, or actions against the public administration. In addition to the financial component, the support of a professional funder like Loopa strengthens the client's procedural position: it allows for sustaining the litigation until the end, resisting dilatory tactics, hiring specialized experts, and negotiating from a stronger position.
Conclusion: legal innovation for a classic jurisdiction
Italy represents a unique combination of deep legal tradition, developed economy, and the need for modern solutions in the face of a demanding judicial system. Litigation funding, although emerging, is already a legitimate and expanding tool that can make a difference in resolving highly complex cases. Loopa arrives in Italy with a clear proposal: to provide strategic capital, professional analysis, and contractual structures compatible with Italian law. Whether in arbitrations based in Milan, business litigation in Rome, or international disputes involving Italian companies, we are prepared to support our legal allies on the path towards a more accessible, fast, and professional justice. Because in Italy, as in the rest of the world, delivering justice also requires resources.
