Litigation funder supports action against Spain

10.02.2015

The Spanish government is to be taken to an arbitration court over the reductions in the feed-in tariffs for renewable energy. Are the plaintiff's chances so good that an international litigation funder is willing to get involved?

The Madrid law firm DIKEOS Abogados claims to be close to signing an agreement with a renowned London litigation funder on financing arbitration proceedings against the Spanish government.

The subject of the arbitration proceedings, which will be carried out in Stockholm, is the reduction in the feed-in tariff for renewable energy projects that was implemented in Spain last year. Under the agreement, the litigation funder will pay all costs of arbitration, and if the proceedings are successful, it will receive a 25% share of the money awarded to the plaintiff by the arbitration court. "Working with a litigation funder is practically the only way our clients can initiate multi-million dollar arbitration proceedings against Spain," said Richard Wicke, the partner in charge of the case at DIKEOS.

A litigation funder analyses the prospects of success and if it is confident that the chances of winning are good, it will usually cover a part or all of the cost of litigation, including lawyer and court fees, and will receive a pre-agreed portion of the disputed sum of money as compensation. Exactly who intends to sue the Spanish government in an arbitration court in this particular case was not disclosed.

Volker Buddensiek

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