Unlike the principle of "no win, no fee", third party funding is not prohibited in The Netherlands.
A common example of third party funding concerns the funding by insurance companies of litigation proceedings for the insured and/or the policy holder. With respect to consumers, insurance companies generally decide at their own discretion which attorney will carry on the proceedings on behalf of the consumer. For such proceedings, freedom to choose your own litigator is consequently very limited. However, when it concerns businesses, it is not unusual for the business to have a say in retaining a lawyer.
As insurance premiums can be costly, many businesses decide not to take out a legal assistance insurance. Whilst third party funding may sound like a good alternative, for businesses without legal assistance insurance, it is not yet popular in The Netherlands.
To date, only one company has offered third party funding in The Netherlands (since 2001). This company takes care of the payment of lawyers' legal fees, Court charges and expert fees (if any). If the claim is successful, the company receives a percentage of the payout, provided that this percentage does not conflict with the "no win, no fee" principle.
The success rate of this company is unknown as figures are, unfortunately, not published - although it remains the only company in The Netherlands involved in third party funding. An alternative to third party funding and "no win, no fee" is currently being considered by the Dutch government on a similar basis to that currently operated in the United Kingdom. Discussions are now taking place between Government officials and the Dutch Bar Association on the implementation of a pilot scheme.