Litigation financing in the Dominican Republic
Third-party litigation funding is a legal and financial tool that is transforming access to justice in many parts of the world. It allows a person or company with a legitimate claim to receive the necessary financial support to initiate or continue a judicial or arbitral process, without assuming the costs of the litigation upfront. In the Dominican Republic, this model is beginning to gain ground as a response to the structural delays of the judicial system and the need for solutions that balance access to the courts. Loopa, as a specialized fund, supports this evolution by offering capital, analysis, and strategic support in meritorious litigation.
History of third party funding in the Dominican Republic
In the Dominican Republic, the concept of third party funding is still incipient. Unlike other Latin American countries with more development in this area, such as Brazil or Mexico, the model is not yet consolidated locally. However, there is a growing interest among lawyers and companies in exploring alternative financing mechanisms that allow progress in complex litigation without compromising their own resources. This interest has been driven by two key factors. On one hand, the duration of judicial processes, which in certain cases can exceed five or six years; and on the other, the liquidity needs faced by many plaintiffs who, despite having a strong case, cannot afford the necessary legal costs to move it forward. In this context, Loopa emerges as a pioneer in the region, offering a concrete solution aligned with the best international practices.
Legal framework: compatibility with continental law
The Dominican Republic adopts a civil law or continental system, of French origin, which means that contracts between parties are valid as long as they do not violate express provisions of the law or public order. In this context, third party funding is configured as a lawful private agreement, which can be structured in accordance with the autonomy of will. The Dominican legal system allows for the assignment of credits, including litigious credits, which is key to structuring financing agreements. This assignment can be used as collateral for the recovery of the capital contributed, as long as the applicable procedural principles are respected. Likewise, the practice of agreeing on fees based on the outcome—similar to the quota litis model—is accepted in the country, reinforcing the compatibility of the system with schemes of success-based remuneration. Thus, the financing offered by Loopa fully aligns with the Dominican legal framework, allowing for operations with legal certainty and transparency.
Arbitration application: a setting with clear rules
The Dominican Republic has a modern arbitration law, based on the UNCITRAL Model Law, which regulates both national and international arbitrations. This legislation, combined with the country's adherence to the New York Convention, creates a favorable environment for dispute resolution outside the traditional judicial system. The Santo Domingo Chamber of Commerce and Production and other institutions offer active arbitration services. Although the involvement of third-party funders is not yet common in the country, there is no rule prohibiting it, and international regulatory developments suggest that third-party funding will increasingly be accepted in these spaces as well. In this context, Loopa is able to finance arbitrations in the Dominican Republic, covering not only legal costs but also institutional fees, expert opinions, and other procedural expenses. This allows companies or individuals with strong claims to access arbitration without being limited by a lack of resources.
Application in judicial disputes: monetizing time
One of the main challenges of the Dominican judicial system is the length of the processes. Civil or commercial litigation can take several years to reach a final judgment, especially in cases that require appeals or go through different instances. During that time, the plaintiff must bear the costs of the litigation without guarantee of success or access to the funds claimed. Faced with this reality, the Loopa model allows to monetize time: by advancing a portion of the economic value of the claim, the client can transform an illiquid asset into immediate liquidity. This solution is particularly useful in lawsuits against the State, complex executions, class actions, or high-value business claims. Furthermore, financing allows to improve the case strategy, by enabling the hiring of specialized lawyers, technical consultants, or financial experts to strengthen the client's legal position.
Conclusion: justice supported in the Dominican Republic
The Dominican legal system offers the necessary conditions for the development of third-party litigation funding. Although the model is still in an early stage, its compatibility with civil law, its utility in contexts of judicial delay, and its applicability in arbitrations make the Dominican Republic a jurisdiction with high growth potential. Loopa, as a specialized fund with a regional vision, is prepared to lead this change. We offer capital, professionalism, and commitment so that every meritorious claim can move forward, without lack of resources being an obstacle. Because in the Dominican Republic, as in the whole world, every individual or company with a good case deserves the opportunity to assert it.
