Litigation Funding in Quebec / Financement de litiges au Québec
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Since opening its doors in Canada in 2016, Bentham IMF has seen strong interest in litigation funding from Quebec clients and lawyers. We have considered over 25 cases from the province, and, in the last few months, we committed to funding our first two Quebec matters: a construction dispute being litigated by Borden Ladner Gervais LLP, and a CCAA-related lending dispute being litigated by Dentons Canada LLP.
We expect interest from Quebec to increase over time. This is supported by Quebec jurisprudence: the assistance of third parties in litigation has been the subject of positive judicial consideration for over a decade.
In 2006, the Quebec Court of Appeal considered whether the ancient doctrine of champerty—which had been an impediment to third-party litigation funding in common law jurisdictions until recent years—prevented third-party funding in Quebec. In the case of Montgrain v. Banque Nationale du Canada, the unanimous Court found it did not, as “the concept of champerty is inapplicable in Quebec civil law” (para. 63) and the Civil Code of Québec does not prevent third-party litigation funding arrangements.
More recently, in the 2015 Marcotte v. Banque de Montréal decision, Justice Roy (now of the Quebec Court of Appeal) noted that litigation funding can address access to justice considerations. She held that, “In the face of legal costs, an industry has emerged, which is not yet widespread in Quebec, but which is gaining momentum in Canada and is more developed in Great Britain. A client who could not otherwise enforce his or her rights can obtain funding, in return for a commitment to provide a high financial return to the funder. In exchange, the latter agrees to risk its funds, and is paid only if the plaintiff wins his or her case. … [T]he financing of litigation by third parties is a path to justice” (paras. 43-44; citations omitted).
Since opening its doors in Canada in 2016, Bentham IMF has seen strong interest in litigation funding from Quebec clients and lawyers. We have considered over 25 cases from the province, and, in the last few months, we committed to funding our first two Quebec matters: a construction dispute being litigated by Borden Ladner Gervais LLP, and a CCAA-related lending dispute being litigated by Dentons Canada LLP.
We expect interest from Quebec to increase over time. This is supported by Quebec jurisprudence: the assistance of third parties in litigation has been the subject of positive judicial consideration for over a decade.
In 2006, the Quebec Court of Appeal considered whether the ancient doctrine of champerty—which had been an impediment to third-party litigation funding in common law jurisdictions until recent years—prevented third-party funding in Quebec. In the case of Montgrain v. Banque Nationale du Canada, the unanimous Court found it did not, as “the concept of champerty is inapplicable in Quebec civil law” (para. 63) and the Civil Code of Québec does not prevent third-party litigation funding arrangements.
More recently, in the 2015 Marcotte v. Banque de Montréal decision, Justice Roy (now of the Quebec Court of Appeal) noted that litigation funding can address access to justice considerations. She held that, “In the face of legal costs, an industry has emerged, which is not yet widespread in Quebec, but which is gaining momentum in Canada and is more developed in Great Britain. A client who could not otherwise enforce his or her rights can obtain funding, in return for a commitment to provide a high financial return to the funder. In exchange, the latter agrees to risk its funds, and is paid only if the plaintiff wins his or her case. … [T]he financing of litigation by third parties is a path to justice” (paras. 43-44; citations omitted).
In order to better serve Quebec clients and counsel, Bentham IMF recently hired veteran litigator, formerly of Osler, George R. Hendy, Ad.E. as Senior Advisor—Quebec.
We are excited to be at forefront of the litigation funding industry in Quebec.
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Depuis son arrivée au Canada en 2016, Bentham IMF a manifesté un vif intérêt pour le financement des litiges par les clients du Québec et leurs avocats. Nous avons examiné plus de 25 demandes de financement de clients du Québec et, au cours des derniers mois, nous nous sommes engagés à financer nos deux premières affaires au Québec:un différend dans le domaine de construction, intenté par Borden Ladner Gervais LLP, et un litige contre un prêteur extra-provincial (dans le contexte de la LAAC) intenté par Dentons Canada LLP.
Nous nous attendons à ce que l'intérêt au Québec pour le financement des litiges par Bentham IMF continue d'augmenter au fil du temps. Cela est confirmé par la jurisprudence québécoise: le financement de litiges par des tiers a fait l'objet d'un examen judiciaire positif depuis plus d'une décennie.
En 2006, la Cour d'appel du Québec s'est demandée si l'ancienne doctrine de la «champerty», qui avait entravé le financement des litiges par des tiers dans les pays de common law jusqu'à ces dernières années, empêchait le financement par des tiers au Québec. Dans l'arrêt Montgrain c. Banque Nationale du Canada, la Cour a conclu unanimement que ce n'était pas le cas, car «le concept de champart est inapplicable en droit civil québécois» (para. 63) et le Code civil du Québec n'empêche pas les ententes de financement de litige.
Plus récemment, dans la décision Marcotte c. Banque de Montréal en 2015, la juge Claudine Roy (maintenant juge à la Cour d'appel du Québec) a noté que le financement des litiges implique des considérations d'accès à la justice. Elle a écrit « Face aux coûts de justice, une industrie a vu le jour qui n'est pas encore répandue au Québec, mais qui prend de l'ampleur au Canada et est plus développée en Grande-Bretagne. Un client qui ne pourrait autrement faire valoir ses droits peut obtenir du financement en échange de l'engagement de remettre un rendement élevé au financier. En contrepartie, ce dernier accepte de risquer ses fonds et n'est payé que si le demandeur obtient gain de cause. … [L]e financement de litiges par des tiers constitue une voie d'accès à la justice » (paras. 43 à 44, citations omises).
Bentham IMF a récemment étendu sa présence au Québec avec l'embauche du plaideur chevronné, auparavant chez Osler, George R. Hendy, Ad.E. à titre de conseiller principal—Québec.
Nous sommes ravis d'être à la fine pointe de l'industrie du financement des litiges au Québec.