Earlier quoted context omitted.
I was going to say the same thing, but I think this is the key phrase: | litigation where the funder has otherwise has no connection with the merits of the dispute. I think those organizations and other social policy groups can demonstrate that they have a vested interest in the merits of the dispute. In fact that litmus test may be overbroad, allowing any corporation for whom the case is useful to their business str…
Except Thiel arguably has "connection with the merits of the dispute". He feels that Gawker violated his privacy as well as Hogan's, and he wants Gawker to be punished and/or discouraged from further similar behavior. Just like the EFF or ACLU.
I agree with the first sentence, but not with the second. There should never be a situation in which you can use the legal process to extract revenge over a matter which has not itself been subject to the legal process. This would allow Thiel to seek revenge for almost anything.
However, Thiel has the legitimate justification of believing that Gawker's behavior in the Hogan situation was simply abhorrent, which is something that I and many other observers also believe, and also the legitimate justification of believing that Gawker abuses it's access to funds and lawyers to avoid the consequences of being sued for such behavior, both of which are reasons to fund a suit against them. Particularly for the latter reason it doesn't strike me as unfair to fund a tort by an individual against a corporation which has demonstrated every intention of avoiding justice.