Litigation financing in Switzerland: strategic capital in one of the world's safest jurisdictions
Switzerland is synonymous with stability, legal certainty, and institutional neutrality. With a highly professionalized judicial system and a prominent position as an international arbitration hub, the country represents one of the most favorable jurisdictions for the development of third party funding. In this high-level technical environment and high economic sophistication, Loopa provides capital, experience, and solid legal structures so that those with a meritorious case can litigate without compromising their liquidity.
History of third party funding in Switzerland
Switzerland was one of the first countries in continental Europe to explicitly recognize the legality of third-party funding. In the early 2000s, the Swiss Federal Tribunal validated this type of agreements, as long as they did not compromise the lawyer's independence or the client's right to make strategic decisions about their case. Since then, the model has evolved in an orderly and consistent manner. Initially limited to arbitration proceedings or high-value litigation, it now also extends to commercial judicial disputes, insolvency proceedings, civil liability disputes, and class actions. Several local and international funds operate actively in the country, and legal professionals are increasingly familiar with this form of funding. Loopa arrives in Switzerland to offer a professional, agile solution aligned with the highest ethical and legal standards that characterize the country.
Legal framework: contractual autonomy and legal certainty
Swiss law, with a civil law tradition, fully recognizes the autonomy of the will. There is no specific law regulating third-party financing, but the general legal framework allows these structures to develop with full validity, as long as principles such as transparency, good faith, and non-interference in the client's legal defense are respected. The assignment of litigious claims is lawful in Switzerland, forming the legal basis for agreements between the funder and the holder of the litigation. Furthermore, the Federal Court has established that a third party assuming the cost of litigation does not affect the validity of the proceedings or access to the courts. The Loopa model fully complies with the Swiss regulatory framework: transparent agreements, respect for the lawyer's independence, and clear structures defining the rights and obligations of all parties.
Arbitration Application: Switzerland as an International Reference Venue
Switzerland, and especially Geneva and Zurich, is one of the most prestigious arbitration venues in the world. Institutions such as the International Court of Arbitration of the International Chamber of Commerce (ICC), the Court of Arbitration for Sport (CAS), and the Swiss Arbitration Centre administer hundreds of arbitrations annually, both in commercial disputes and in sports or contractual disputes. Swiss arbitration legislation is aligned with international standards, and the country is a signatory to the New York Convention, ensuring the recognition and enforcement of foreign awards. Third-party funding is a common practice in arbitrations seated in Switzerland, and its existence is not only acknowledged but also regulated in many institutional rules, which require disclosure of their involvement in case of potential conflicts of interest. Loopa can finance arbitration proceedings in Switzerland covering legal costs, arbitration fees, expert expenses, translations, and logistics, allowing the client to focus on the substance of the dispute without worrying about the financial burden of the process.
Application in judicial disputes: response to complex and lengthy processes
Although the Swiss judicial system is recognized for its efficiency and predictability, large-scale litigation—such as disputes between companies, cross-border conflicts, or damage proceedings—can drag on for years and require significant investments. Loopa offers a specific solution: monetizing litigation. This means that the plaintiff can receive an advance on the estimated economic value of their claim, transforming a future expectation into immediate liquidity. This funding can be used to cover legal costs, maintain operational activity, or strengthen the procedural strategy of the case. Furthermore, Loopa assumes the risk: if the litigation does not have a favorable outcome, the client is not obligated to repay the investment received.
Conclusion: Swiss precision with global solutions
Switzerland combines legal excellence with a dynamic economy and an institutional environment that favors the development of innovative models such as litigation funding. Third-party backing allows for risk-sharing, expedited processes, and ensures that legitimate rights can be enforced, even in prolonged and technically complex cases. Loopa, with international experience and structures tailored to Swiss law, offers strategic funding, rigorous analysis, and professional support in high-value litigation and arbitration. Whether in Geneva, Zurich, or any other canton, we are ready to support those with a strong case... but cannot wait. Because even in Switzerland, justice needs resources to move forward.
