Italian Supreme Court Archives

The Italian Supreme Court Paves the Way to Further Expansion of Litigation Funding in Italy

Litigation Funding is fast-growing in Italy. According to one of the most experienced Litigation funders operating across several jurisdictions including Italy, [1] the investment potential is equal to ~EUR 185 million and it is estimated to reach 325 million in 2027. Currently, the most relevant cases in Italy involve antitrust litigation, international arbitration, commercial litigation, and intellectual property disputes. In the future, those related to climate change and sustainability are also expected to increase significantly.

Due to the development of the practice, Italian Courts have started to issue the first decisions concerning the formal requirements that litigation funders are requested to meet under Italian law to enter a credit assignment transaction with the litigant. In this regard, the Italian Supreme Court took its view in the context of disputes arising from claims brought by the passenger against an operating air carrier under Article 7 of Regulation (EC) no 261/2004.

The Cases

By decisions no 4427 on 20 February 2024 [2], no 7375 on 19 March 2024 [3], no 7635 on 21 March 2024 [4]], and,more recently, no 13749 on 17 May 2024 [5], the Italian Supreme Court ruled on cases

Corporate Compliance: A Ruling from the Court of Milan Further Clarifies How to Prevent Corporate Criminal Liability in Case of Directors’ Criminal Violations

The Italian Supreme Court recently stated that the director’s criminal liability cannot automatically trigger the recognition of corporate criminal liability, as company’s organizational fault must be specifically demonstrated by the Public Prosecutor.[1] Now, the Court of Milan[2] specifically clarifies how an appropriate and effective Organization, Management and Control Model (Model 231) pursuant to Italian Legislative Decree 231/01 (Decree 231) can shield the company from corporate criminal liability.

On January 25, 2024, the Court of Milan convicted the senior managers of an Italian joint-stock company (owned by a foreign-based multinational company) for false corporate communications, pursuant to Article 2621 of the Italian Civil Code (ICC), which provides the criminal liability of directors, general managers, managers in charge of preparing corporate accounting documents, auditors and liquidators when they represent false material facts or they omit material facts whose disclosure is required by law concerning the economic or financial situation of the company or the group.

The Court’s Overview of the Preconditions for Corporate Liability for Criminal Violations

In addition to the analysis of the liability of natural persons, the Court of Milan examined the legal requirements for the company to be deemed liable for crimes committed by