LUXEMBOURG Law and Practice Contributed by: Fabio Trevisan and Laure-Hélène Gaicio-Fievez, BSP
2.4 Minimum and Maximum Amounts of Third-Party Funding The question of minimum and maximum amounts for third-party funding is entirely sub- ject to the contractual agreement between the client and the funder, as there are no legal provi- sions specifying any threshold. 2.5 Types of Costs Considered Under Third-Party Funding This is also open to negotiation, with no imposed restrictions on the types of costs that can be covered. 2.6 Contingency Fees The internal regulation of the Bar prohibits law- yers’ fees from being solely contingent on the outcome of a case. However, a success fee can be added to the base fees, provided this is mutually agreed and documented between the client and the lawyer. 2.7 Time Limit for Obtaining Third-Party Funding As there are no existing regulations, there is no set time limit for securing third-party funding. There are no mandatory procedures parties must initiate before filing a lawsuit. However, parties can agree contractually to first attempt media- tion or arbitration, or to provide notice prior to litigation. 3.2 Statutes of Limitations The general statute of limitations for civil matters is 30 years, and 10 years for commercial mat- ters. Certain cases have specific, shorter time frames as laid out in the Civil Code: 3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct
In oral proceedings (lower courts and commer- cial courts), the litigant may be represented by any lawyer, including those from List I, II (trainee lawyers or avocat stagiaire ) or IV (foreign law- yers from the EU practising under their home country’s professional title), or V or VI (law firms under the form of companies). Litigants may also be represented in certain cases by non-lawyers, such as their spouse or a family member. In instances awaiting resolution within the Mag- istrate’s Court (for claims amounting to less than EUR15,000) and in matters under considera- tion by the commercial chamber of the district courts, individuals can defend themselves with- out a lawyer. 2. Litigation Funding 2.1 Third-Party Litigation Funding Despite the growing use of third-party litigation funding in Luxembourg, there are presently no explicit regulations governing this practice. As such, it is available to parties involved in legal proceedings, provided they adhere to the law- yers’ ethical and legal obligations. 2.2 Third-Party Funding: Lawsuits There are currently no specific restrictions on the kind of lawsuits eligible for third-party funding. Aside from the ethical and legal obligations of lawyers, any type of lawsuit can potentially be financed by a third party. 2.3 Third-Party Funding for Plaintiff and Defendant The financing of a judicial procedure by a third party is available to both the plaintiff and the defendant.
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