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Vol. 63 No. 4 (2026): Law&Social Bonds

Legal Nature of Third-Party Funding Agreements under Polish Law

DOI:
https://doi.org/10.36128/v0p7qs68
Submitted
5 May 2025
Published
24 September 2026

Abstract

This article explores the legal nature of third-party funding agreements (LFAs) under Polish civil law, situating the discussion within broader EU regulatory developments and comparative legal analysis. The article analyses LFAs considering the principle of party autonomy and its limitations, including pactum de quota litis, assignment of claims, and disproportionate funder returns. By comparing LFAs to close contracts such as silent partnerships, insurance contracts, and loans, the article claims that LFAs shall be classified as sui generis contracts under Polish law. The analysis leads to the conclusion that while there is no immediate need for specific regulation of LFAs under Polish or EU law, targeted regulatory efforts at the EU level – particularly on funder capital adequacy and public policy safeguards – could enhance legal certainty and support the responsible growth of the litigation funding market.

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