Litigation financing in the Netherlands: transparency, innovation, and access to justice
The Netherlands, with its strong legal tradition, reputation as a center for arbitration, and sophisticated business environment, have established themselves as one of the most receptive European countries to third party funding. In a system where judicial efficiency coexists with complex and high-value disputes, the legal financing model offers an effective solution to share risks, release liquidity, and ensure that no meritorious case is left behind. Loopa, as a specialized fund, provides capital, expertise, and solid contractual structures to drive litigation based on this key jurisdiction.
History of third party funding in the Netherlands
Unlike other continental jurisdictions that have adopted the model more recently, the Netherlands have been pioneers in Europe in the practical incorporation of third party funding, especially in the context of collective actions, commercial litigation, and international arbitrations. Since the early 2010s, the country was shaping up as fertile ground for the development of this industry, thanks to its flexible legal system, progressive legal culture, and the consolidation of Amsterdam as a financial and legal regional center. One of the areas where the model has had a greater role has been in collective actions for consumer and investor protection, where external funders have played an essential role in allowing mass claims to progress against large corporations. Today, third party funding in the Netherlands is a common practice, accepted by courts, regulators, and arbitrators, and supported by regulatory frameworks that promote transparency.
Legal framework: contractual freedom and jurisprudential support
The Netherlands have a modern civil law system, based on the principle of contractual freedom, which allows parties to enter into valid private agreements, including those related to litigation financing. There is no specific legislation regulating third party funding, but the practice is fully accepted as long as good faith, transparency, and the principles of lawyer independence are respected. The assignment of litigious claims is permitted under the Burgerlijk Wetboek (Dutch Civil Code), and is frequently used to structure the relationship between the funder and the client. Additionally, Dutch courts have developed favorable case law recognizing the legitimacy of the model, including in collective proceedings. Although there are certain ethical rules that prohibit lawyers from assuming direct financial risks in the outcome of litigation (quota litis), these limitations do not extend to third-party funders like Loopa, allowing for the implementation of shared risk schemes with full legal validity.
Arbitration application: The Netherlands as a reference venue
The Netherlands, and particularly The Hague, are recognized as one of the most prestigious centers for international arbitration in Europe. Institutions such as the Netherlands Arbitration Institute (NAI), as well as the Permanent Court of Arbitration and various investment and commercial arbitration venues, establish the country as a highly reliable jurisdiction for alternative dispute resolution. In this environment, third party funding is a common and well-accepted practice. Institutional rules promote the disclosure of external funding to avoid conflicts of interest, and arbitrators are familiar with the structure and operation of these agreements. Loopa can act as a funder in arbitrations based in the Netherlands or involving Dutch parties, providing capital to cover legal fees, arbitration costs, expert expenses, translations, and other associated costs. Our model is tailored to the demands of international arbitration, respecting the parties' independence and optimizing the viability of the claim.
Application in judicial disputes: monetization and procedural empowerment
Despite the recognized efficiency of the Dutch judicial system, many high complexity litigations—such as class actions, cross-border proceedings, corporate disputes, or claims against the State—can drag on for years and require significant investments. For many companies or individual claimants, these costs can represent a significant barrier to moving forward with their case. Loopa's model allows for the monetization of litigation, meaning anticipating part of the economic value of the claim, transforming a future expectation into available capital from the outset. This not only allows for progress without committing one's own resources, but also strengthens the procedural position and the ability to withstand dilatory tactics. Furthermore, by assuming the financial risk, Loopa validates the case from a legal and economic perspective, providing credibility and sending a clear signal to the counterparty: the claim is backed by professionals and structured to be litigated to the end, if necessary.
Conclusion: ideal environment for legal financing
The Netherlands combine a mature legal system, clear procedural rules, and an environment open to legal innovation. Third party funding is no longer a novelty, but a consolidated and increasingly strategic tool within the Dutch procedural ecosystem. From class actions to complex commercial arbitrations, external financing has been integrated as a natural part of modern access to justice. Loopa, with its international focus and experience in complex litigation, is prepared to operate in the Netherlands with full legal compatibility. We provide capital, rigorous legal analysis, and contractual structures adapted to the Dutch framework. Our goal: that no meritorious claim is left unaddressed due to lack of resources. Because in the Netherlands, as in all of Europe, access to justice is also funded.
