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Wildfang, K. Craig; Slaughter, Stacey P. --- "Funding Litigation" [2010] ELECD 752; in Foer, A. Albert; Cuneo, W. Jonathan (eds), "The International Handbook on Private Enforcement of Competition Law" (Edward Elgar Publishing, 2010)

Book Title: The International Handbook on Private Enforcement of Competition Law

Editor(s): Foer, A. Albert; Cuneo, W. Jonathan

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848448773

Section: Chapter 12

Section Title: Funding Litigation

Author(s): Wildfang, K. Craig; Slaughter, Stacey P.

Number of pages: 20

Extract:

12 Funding litigation
K. Craig Wildfang and Stacey P. Slaughter1


Fee arrangements in funding antitrust cases are varied. In the United States, for example,
contingent fees, hourly fees, and alternative billing arrangements have all been used to
finance antitrust lawsuits in private enforcement actions. This chapter focuses on the
various types of fee arrangements utilized in funding antitrust and competition lawsuits
in private enforcement actions. This chapter focuses on American fee models, specifi-
cally the history of contingency fees, along with a brief analysis of other fee models. This
chapter also discusses the typical costs associated with antitrust litigation, which are a
significant factor in funding such litigation. Cost plays a role in budget considerations
for the litigation, and vary depending on the stage of the litigation. Finally, this chapter
discusses some of the noteworthy damage recoveries and attorney's fees obtained in
private enforcement antitrust actions.

History of funding litigation in the US through contingent fees
The contingent fee system developed from the once-prohibited practice of selling
speculative judgment proceeds to a disinterested party, in consideration for funding
the underlying litigation.2 Commonly known as `champerty,' the prohibition on
such bargains between plaintiffs and disinterested third parties existed as early as
thirteenth-century England when feudal lords and magnates could take advantage of

1
K. Craig Wildfang is a partner at the law firm of Robins, Kaplan, Miller & Ciresi L.L.P.
Before joining the firm's antitrust practice, Mr. Wildfang served as Special Counsel to the
Assistant ...