A recent decision by the Supreme Court of Canada involving third-party litigation funding may cause a spike in some types of lawsuits, especially coming on top of the economic downturn caused by the COVID-19 pandemic.

Canada’s top court has given the green light to litigation funding agreements used in specific circumstances. On May 8, the Supreme Court of Canada issued a decision in which it ruled that litigation finance could be used in an insolvency proceeding. The case, 9354-9186 Québec v. Callidus Capital, opens the door to professional investment in insolvency matters, which are expected to rise in the wake of COVID-19 related financial fallouts.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]