Global
Litigation Insurance in Australia
Security applications against funded claimants can be routine.
AU
Sydney
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- Security for costs
- Group proceedings
- Costs shifting
Illustrative. The forum decides which exposures exist at all: its costs rules, its approach to security and how its judgments travel.
How can litigation insurance work in Australia?
Security applications against funded claimants can be routine. That can shape which exposures dominate — security for costs, group proceedings, costs shifting — and therefore which structures may be considered. Availability, admitted status and enforceability of any instrument depend on the forum and on policy terms, and are confirmed matter by matter, subject to underwriting.
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Forum file
Australia
AU
- Costs rule
- Loser pays
- Weight of adverse costs
- High
- What tends to dominate
- Adverse costs; security against funded claimants
- Relevant cover
Risks to check first
- Security for costs
- Group proceedings
- Costs shifting
Structure may follow the procedural rules of the forum, not the parties' nationality. General orientation, not advice; rules have exceptions.
Common risk types
Costs generally follow the event.
Security for costs is frequently sought against funded claimants and class action applicants, and class actions are an active area for funders.
Relevant products
- ATE and ATE-backed security, commonly with a deed of indemnity to the defendant
- Capital protection for funders
- Portfolio cover across class actions
Key considerations
Courts have accepted appropriately worded ATE and deeds of indemnity as security in a number of cases.
In Victoria, group costs orders allow contingency-style fees in class actions. Funding regulation has changed several times in recent years, so check the current position.
Enforcement
Judgments are enforceable across states and territories under national registration schemes.
Enforcement abroad depends on reciprocal arrangements.
Frequently asked
Is security for costs common in Australia?
Yes, particularly against funded claimants and in class actions. Appropriately worded ATE with a deed of indemnity has been accepted as security in a number of cases.
Can lawyers charge contingency fees in Australian class actions?
In Victoria, the Supreme Court can make group costs orders allowing a percentage-based fee in class actions. Other jurisdictions take different approaches; check the current position.
Is litigation funding common in Australia?
Yes, particularly for class actions, though the regulatory position for funders has changed several times; check the current rules.
Does the loser pay costs in Australia?
Generally yes, costs follow the event, subject to the court's discretion.
What is a deed of indemnity in Australian security applications?
A deed under which the insurer agrees to pay the defendant's costs directly, giving the defendant its own enforceable right alongside the ATE policy.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.
Where to go next
Relevant products
Other jurisdictions