Originally from Handbook on Third-Party Funding in International Arbitration, Second Edition

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PART  I.  THE THIRD-PARTY FUNDING LANDSCAPE

1.   TPF market in Croatia

1.1.  Please shortly describe the TPF market in your Jurisdiction.

In Croatia, there is currently no specific legal framework governing TPF. Due to the lack of regulations and awareness regarding the institution of funding, Croatian courts do not have the authority to compel the disclosure of this fact during proceedings, verify the existence of conflicts of interest or reasons for a judge’s recusal, obligate a third party to cover the costs of the proceedings, or determine the provision of security for procedural expenses.

Despite the lack of specific regulations, as previously mentioned, third-party funding of legal proceedings is a widely prevalent phenomenon in practice, particularly evident in collective redress and labor disputes. In this vein, The Law on Representative Actions for the Protection of Collective Interests and Consumer Rights (Official Gazette of Republic of Croatia 59/2023) contains provisions regarding the funding of lawsuits for the protection of collective interests and consumer rights.

1.2.  Is it dominated by local or international Funders? Which Funders are active? Which cases typically get funded?

In Croatia, the market is dominated by international funders. Currently, there are no active funders domiciled in Croatia that operate in Croatia (except for certain interest groups, such as labour unions). It is also challenging to identify the most common cases, given that TPF is not yet regulated in Croatia; however, it is increasingly prominent in collective redress and labor disputes (labour unions often fund litigation procedures for employees).