Ireland’s President has approved legislation that allows third parties to finance international commercial arbitration. Historically, Ireland has enacted a very restrictive approach to third party funding vehicles to finance litigation costs in the name of champerty. 

Mondaq reports that legislative approval of Ireland’s “Courts and Civil Law (Miscellaneous Provisions) Act 2023” advances many provisions concerning Ministerial Order. While Ireland still maintains a hawkish approach to champerty, now litigation financiers can enter into investment agreements to fund international arbitration proceedings. 

Anticipation has been building that Ireland’s Law Reform Commission may release new guidelines to vacate the broad prohibition of third party funding. Specifically, Ireland has only approved third party funding of dispute level proceedings, including international commercial arbitration, mediation, conciliation and/or court proceedings derived from international commercial arbitration. Previously, Ireland’s Supreme Court had been hesitant to embrace the notion of litigation finance in any form.