Litigation funding in Sweden: efficient justice with strategic support
Sweden, recognized for its institutional transparency, efficient judicial system, and strong presence in international arbitration, is positioning itself as a favorable jurisdiction for the expansion of third party funding in litigation. Although the Swedish legal system allows relatively easy access to justice, complex litigation—especially those of an international or commercial nature—can involve costs and risks that many companies or individuals prefer not to bear alone. In this context, Loopa offers structured, ethical, and tailored financing solutions in the Swedish legal environment.
History of third party funding in Sweden
The third party funding model in Sweden is still emerging, but with clear signs of growth. Until a few years ago, there was hardly any activity in this field, partly due to universal access to the judicial system and the possibility of public legal coverage in certain cases. However, with the increase in business litigation, high-value arbitrations, and the growing presence of Swedish companies in international trade, interest in the model has been on the rise. In sectors such as energy, construction, information technology, and maritime law, there are already cases where plaintiffs turn to specialized funds to share the risk and not compromise their liquidity. Loopa, with experience in complex litigation at the European level, is prepared to lead the structured introduction of the model in the Swedish market.
Legal framework: compatibility with Scandinavian law
Sweden is governed by a Scandinavian-type civil law system, characterized by its flexibility, legal certainty, and respect for contractual freedom. There is no specific regulation prohibiting or limiting third-party funding, allowing its implementation within the bounds of legality, as long as basic principles such as good faith, transparency, and lawyer independence are respected. The assignment of litigious claims is valid under Swedish law and can be used as a contractual basis to structure the relationship between the funder and the client. Although lawyers are subject to strict ethical principles regarding fee setting, these do not affect third parties unrelated to the legal process, such as funding entities. Therefore, Loopa can operate with complete legal certainty in Sweden, offering funding without interfering in the legal strategy or the relationship between the lawyer and their client.
Arbitration application: Sweden as a global reference venue
Sweden, and especially Stockholm, is one of the most prestigious arbitration centers in the world. The Stockholm Chamber of Commerce Arbitration Institute (SCC) has been administering international arbitrations for decades and is particularly active in commercial disputes between European, Russian, and Asian companies. Swedish arbitration law is harmonized with the UNCITRAL Model Law and Sweden is a signatory to the New York Convention, ensuring the recognition and enforcement of awards in over 160 countries. In this environment, third-party funding is fully compatible and increasingly common in high-value arbitrations. Loopa can finance arbitration proceedings in Sweden, covering legal costs, institutional fees, expert opinions, translations, and other essential expenses, allowing parties to advance their claims without the need to immobilize large sums of capital.
Application in judicial disputes: response to complex and prolonged litigation
Although the Swedish judicial system stands out for its efficiency and reliability, not all procedures are brief or economically accessible. Complex business litigation, international contractual disputes, or intellectual property claims may require years of processing and a significant investment in legal representation and technical evidence. Loopa offers a way to monetize litigation: advance part of the economic value of the case and free up resources to sustain the client's operation during the process. This funding can make a difference in the case's development, as it allows for strengthening the strategy, resisting appeals, or negotiating from a strong position. Furthermore, Loopa's model is based on assuming risks: if the case does not succeed, the client is not obligated to reimburse the investment.
Conclusion: an expanding model in a consolidated legal system
Sweden combines the best of a functional judicial system with the sophistication of a legal market prepared for innovative solutions. Third-party litigation funding represents a legitimate, useful, and expanding tool, especially for companies or individuals seeking justice without compromising their financial stability. Loopa arrives in Sweden with a clear proposal: to finance cases with merit, share risks, and allow the best litigations to reach their conclusion, even when the available capital would not allow it. Whether in arbitration or in courts, we are prepared to be strategic allies of justice in Northern Europe. Because even in the most advanced systems, justice needs resources.
