Third-party litigation funding changes the game in the UK

December 29, 2011 Here is an interesting article in The Guardian about third party funding of litigation, where a disinterested third party takes on the financial risk of another's litigation in return for a cut of the damages. The practice can enable claimants to bring cases that they would otherwise be unable to afford, or to level the playing field between parties.

It is believed that litigation funding will remain efficient because no rational business would waste money on the pursuit of fruitless or malicious actions. But it will not, of course, be an appropriate means to increase access to justice in all cases, since it is only large cases that offer the possibility of enough of a return to justify the investment.

The rapid growth of the industry in the UK has prompted the publication of a voluntary code of conduct – negotiated through independent public body the Civil Justice Council, and supported by Lord Justice Jackson – but many argue that further regulation is needed.

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