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Litigation Funding also known as Third Party Funding is the provision of funding to meet a claimants total legal cost for conducting litigation to recover a debt. This provision by the funder includes the adverse cost risk (adverse cost is the cost payable / security provided to the other side if litigation is unsuccessful).
In the event that the case is successful, the funder then as a first charge receives reimbursement of the sums paid out/invested plus a pre-determined percentage of the total recovery.
What is the Legal Status of Litigation Funding in South Africa?
In the case of PriceWaterHouse Coopers Inc and Others v National Potato Co-operative Ltd  (6) SA 66 (SCA), the Supreme Court of Appeal of South Africa held that the need for the rules of maintenance and champerty has diminished, if not entirely disappeared in the light of the right of access to justice enshrined in the Constitution of South Africa and the coming into force of the Contingency Fees Act 66 of 1997 which made speculative litigation possible by permitting “no win, no fees” agreements between legal practitioners and their clients.
The Supreme Court of Appeal of South Africa (SCA) had thus clearly validated Litigation funding under Common Law in South Africa in this “National Potato” case.
SALFCO Service and Claim Preferences
SALFCO concentrates on SPECIALISED DEBT RECOVERIES and the FUNDING of LEGAL CLAIMS for COMPANIES
in the following catagories:
- DAMAGE CLAIMS
- INSOLVENCY CLAIMS
- BUSINESS RESCUES
- PATENT INFRINGEMENTS
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