Litigation funding in Europe in 2025: where does France stand?

In litigation funding, a third party to the dispute pays all or part of the cost of the proceedings, lawyers’ fees first. In return, it receives a share of the sums recovered, and only if the case succeeds. If the case is lost, the funder recovers nothing.

A market still small in Europe.

In 2021 the European Parliament estimated that litigation funding captured 0.8% of the €125 billion in annual revenue of the European legal market Source [1]. Worldwide, market studies put the activity at around $11 billion in 2018 and $19 billion in 2024. They project it at between $51 and $65 billion in 2035 Source [2]. These projections come from research firms, and their ranges differ.

The European framework for collective actions.

Directive (EU) 2020/1828 of 25 November 2020 created in every member state a representative action, through which a qualified entity goes to court on behalf of a group of consumers Source [3]. Where national law allows these actions to be funded by a third party, the directive requires conflicts of interest to be prevented. The funder must not unduly influence the decisions of the entity bringing the action, nor fund an action against one of its competitors.

In September 2022, the European Parliament asked the European Commission for common rules for litigation funders Source [4].

In the United Kingdom, the PACCAR ruling.

In July 2023, the UK Supreme Court held that agreements paying the funder a percentage of the damages recovered are damages‑based agreements. If they do not meet the conditions of that regime, they are unenforceable Source [5]. In 2025, the Civil Justice Council, which advises the British authorities on civil justice, recommended reversing that outcome by legislation Source [6].

In France, from case law to statute.

In France, the Versailles Court of Appeal recognised a third‑party litigation funding contract on 1 June 2006 (Foris AG v Veolia Propreté). It classified it as a sui generis contract Source [7]. The French National Bar Council accepted the practice in November 2015, provided the lawyer’s independence and professional secrecy are respected Source [8], and the Paris Bar did so in February 2017 Source [9].

Article 16 of Law no. 2025-391 of 30 April 2025 gave litigation funding its first statutory recognition, as part of a recast of French group actions Source [10]. Decree no. 2025-1191 of 10 December 2025 sets out how it applies to funded group actions: the court is informed of the funding, and the lawyer remains independent Source [11].

What this changes for a claimant.

The 2025 framework recognises the funding contract and leaves the lawyer in sole charge of the proceedings. It says nothing about the merits of a case: the terms of a funding are those of the agreement signed by the client, their lawyer and the funder.

Hello Justice is the first French company dedicated to funding mid‑market litigation, from €100,000 at stake. The eligibility test and filing your case are free. A funding request triggers the analysis of your case, charged €1,500 excluding VAT, or €1,800 including VAT, whatever our opinion. For a funded case, Hello Justice pays your lawyer’s fees set in the agreement. Its commission, 14 to 30% including VAT of the sums recovered, is due only in the event of success. If the case fails, you repay nothing to Hello Justice.

The risk remains: a case can be lost, last several years, or end in an award the other side does not pay. The analysis may also conclude that the case will not be funded.