Litigation financing in Poland: capital to drive justice in a growing economy
Poland, one of the most dynamic economies in Central Europe, combines a legal system of continental tradition with a legal market that is increasingly sophisticated and open to modern solutions. In this context, third party funding is positioned as an effective tool for sharing risks, facilitating access to justice, and enabling parties with a legitimate claim to move forward without immobilizing capital. Loopa, as a fund specialized in litigation finance, provides financial support and international expertise to support meritorious cases in a jurisdiction with great regional potential.
History of third party funding in Poland
The development of third party funding in Poland has been gradual but steady. Although the model is not yet as widespread as in jurisdictions like Germany or the Netherlands, in recent years it has sparked growing interest among law firms, companies, and stakeholders involved in international arbitration and high-value litigation. This shift has been driven by three main factors: the increase in complex commercial disputes, the consolidation of Warsaw as a regional hub for legal services, and the growing exposure of Polish companies to cross-border conflicts. In this scenario, external financing has become a strategic alternative to optimize cash flow and reduce the financial burden of litigation. Loopa positions itself as one of the first funds to offer this model in a structured way in Poland, combining smart capital with rigorous analysis of legal and economic merit.
Legal framework: civil law and contractual freedom
Poland is governed by a civil law system based on the Polish Civil Code (Kodeks cywilny), which expressly recognizes contractual freedom. In this framework, litigation financing agreements between private parties are valid, as long as they comply with the law and public order. Currently, there is no specific regulation on third party funding, but there are also no provisions that prohibit or restrict it. The assignment of litigious claims is permitted under Polish law, allowing for the structuring of financing contracts where the fund assumes the cost of the litigation in exchange for a portion of the favorable outcome. This mechanism is common in sectors such as debt collection, insolvency, and asset recovery. Regarding the practice of contingency fees (quota litis), while Polish lawyers are subject to ethical restrictions regarding negotiating their remuneration solely based on the outcome, these limitations do not extend to external funders, allowing for the design of flexible agreements that are compatible with current legislation.
Arbitration application: Poland as a favorable jurisdiction
Poland is a signatory to the New York Convention and has adopted an arbitration law aligned with the UNCITRAL Model Law, ensuring that the country is a reliable venue for domestic and international commercial arbitrations. The Arbitration Court of the Polish Chamber of Commerce in Warsaw (SAK) is one of the most recognized arbitral institutions in Central and Eastern Europe. Third party funding is fully compatible with arbitration proceedings in Poland, and although not yet a widespread practice, its acceptance has been increasing, especially in complex commercial disputes involving foreign parties. Loopa is ready to finance arbitrations based in Poland or involving Polish parties, covering legal fees, arbitration costs, expert fees, and other strategic expenses. This allows parties to move forward without being limited by budgetary constraints and strengthens their position against counterparts with greater economic power.
Application in judicial disputes: response to lengthy and costly processes
The Polish judicial system has improved in efficiency in recent years, but still faces challenges in high-value civil and commercial proceedings. Complex or multi-instance litigation can last for years, with cumulative legal costs affecting the plaintiff's ability to sustain the process. Loopa offers a concrete solution: monetizing litigation. This allows the client to convert part of the estimated economic value of their claim into immediate liquidity, without waiting for the outcome of the process. In addition to funding legal fees, the capital can be used to strengthen the procedural strategy, hire experts, withstand appeals, or simply alleviate the financial pressure of keeping the litigation active. The model also includes an essential advantage: Loopa assumes the risk. If the case does not succeed, the client is not obligated to repay the investment.
Conclusion: an expanding model in the heart of Europe
Poland represents one of the most promising jurisdictions for the development of third party funding in Central Europe. Its strong economy, stable legal system, and increasing internationalization of disputes make it a fertile ground for this type of solutions. Loopa arrives in Poland to provide strategic capital, legal expertise, and solid contractual structures that allow the best cases to move forward without being held back by lack of resources. Whether in commercial arbitrations, corporate litigation, or recovery actions, we are prepared to be allies of lawyers, companies, and plaintiffs seeking real access to justice. Because in Poland, as in all of Europe, the right to litigate also needs financial support.
