France’s litigation funding framework, six months after the decree.

Until 2025, no French statute addressed litigation funding. Its legality rested on case law. Article 16 of the law of 30 April 2025 recognised it for the first time, within class actions. Decree no. 2025-1191 of 10 December 2025, which supplements it, has applied since 1 January 2026.

Where the French framework comes from.

Third‑party funding of lawsuits existed in France before 2025. On 1 June 2006, the Versailles Court of Appeal described it as a lawful sui generis contract, meaning a contract of its own kind. The bodies of the legal profession took up the subject. The practice took hold in international arbitration, then in the courts.

Each agreement nevertheless rested on case law alone. A new client, law firm or investor first had to check that the mechanism was allowed.

What the texts organise.

Article 16 of law no. 2025-391 of 30 April 2025 reforms French class actions. It allows the association or entity bringing the action to receive funds from third parties. That funding must give the funder no influence against the interests of the people represented. The entity must also avoid conflicts of interest with its funders.

Decree no. 2025-1191 of 10 December 2025 sets the approval procedure for the associations and entities that bring a class action, domestic or cross‑border. It details their obligations to disclose their funding.

These texts concern class actions. They give third‑party funding its first recognition in a French statute.

What the agreement organises.

For an individual dispute, funding rests on an agreement signed by the client, their lawyer and the funder. The agreement Hello Justice proposes sets the following points.

• The lawyer’s fees, paid by Hello Justice as the proceedings go on.
• Hello Justice’s commission, from 14 to 30% including VAT of the sums recovered depending on the type of case, due only if the case succeeds.
• No repayment if the case fails: the client owes Hello Justice nothing.
• What happens to the procedural indemnity a judge may award (article 700 of the French Code of Civil Procedure).

The lawyer alone decides the strategy. Professional secrecy applies, and the funder does not attend exchanges between the client and their lawyer.

This is how litigation funding differs from credit, since the funder has no claim against the client if the case fails. It differs from the assignment of a claim, since the client keeps ownership of the right and remains a party to the case. It also differs from legal expenses insurance, which covers a future dispute in return for a premium.

What it changes for claimants.

Since 2025, a statute has recognised third‑party funding. The need for funding remains. Asserting a serious claim costs €30,000 to more than €300,000 in fees and costs, over two to four years of proceedings, sometimes longer. According to the French Ministry of Justice, 52% of French people consider legal costs too high (2024).

The eligibility test and filing your case are free. If you apply for funding, the case analysis costs €1,500 excluding VAT (€1,800 including VAT), whatever the opinion, outside the Swiss franc loan programme. If the case is accepted, Hello Justice pays your lawyer’s fees and is paid out of the sums recovered, only if the case succeeds.

What it changes for law firms.

For a firm, the agreement writes down what professional ethics already required: the lawyer’s independence and where payments go. The funder pays the fees as the proceedings go on. The firm no longer depends on its client’s cash for these fees, and the client does not advance them. The relationship between lawyer and client stays the same.

Hello Justice works with specialised partner lawyers. Firms that wish to join this network will find the details on the lawyers page.

What it changes for investors.

An investor funds a practice that the law has recognised since 2025. The framework also imposes transparency rules on the entities that bring class actions.

Hello Justice follows more than 500 live cases, engaged since 2024. The Hello Justice Capital 1 fund is offered as a private placement (article L. 411-2 of the French Monetary and Financial Code), from €100,000. The investor’s eligibility is checked beforehand.

What the framework does not settle.

The framework says nothing about the quality of a case. A specialised partner lawyer analyses the eligibility of each case. The review covers the characteristics of the dispute, limitation (the time limit for bringing a claim), the completeness of the documents and the reasonable chances of success. Not every case is accepted.

The law also keeps evolving through court decisions. On 9 July 2025, the Cour de cassation published two rulings on Swiss franc loans, recent case law, liable to change. Our overview of litigation funding and the how it works page describe the mechanism as a whole.

Frequent questions.

Can the funder run the case?

No. The lawyer alone decides the strategy, and professional secrecy applies. The agreement only organises payments and information.

What happens if the case is lost?

The client repays nothing to Hello Justice. This non‑recourse principle is what separates funding from credit. The case analysis, billed €1,500 excluding VAT (€1,800 including VAT) outside the Swiss franc loan programme, remains due whatever the opinion.

Which cases can be funded?

Hello Justice reviews civil and commercial disputes with at least €100,000 at stake: business disputes, banking and insurance litigation, enforcement of judgments, cases handled as a series. A specialised partner lawyer analyses the eligibility of each case. The online eligibility test is free.