Interesting question. I hadn't contemplated that the funder's would seek to share in part of the legal work fee assuming the case is successful. How would this work in practice?
Me speculating...
Prior to conclusion of the CA (outcome unknown), the funder would make payment towards some proportion of WIP associated with the case thereby diminishing the risk to the law firm? With the final proportion of unpaid WIP (at tail end of the case) withheld and recouped by the funder?
http://www.businessnewsaus.com.au/a...kburn-showdown-in-bellamy-s-class-action.html
This article seems to imply that the funder's share of the litigation settlement is net of costs, but does not confirm how these costs are managed throughout the case itself.
"
In the Bellamy's action, ICP's agreement with Maurice Blackburn commits to giving Bellamy's shareholders at least 50 per cent of any money recovered through the case after costs, while benchmark funding commissions is set between 8-25 per cent."
I assume this is a commercial arrangement between each law firm and third party funder, and it may also relate to what proportion of the litigation settlement (if any) the funder offers the class action members. E.g. ICP commits to giving 50% after costs, IMF Bentham makes no such commitment.
Fyi, I found this online this morning and have only managed to skim read it. Couldn't find an answer to your question though
https://www.allens.com.au/general/forms/pdf/ClassActionRisk2016.pdf?sku=classactionrisk
