Should litigation funding be regulated?
Litigation is an important part of our justice system. As you might expect, however, pursuing legal proceedings – no matter how strong your case – comes at a cost. You will need expert legal advice, too. Litigation funding ensures that this important legal proceeding is open to all and that finances aren’t a barrier to anyone who wishes to pursue a litigation claim.
What’s the state of play right now?
Until recently, litigation funding has been a largely self-regulated regime. However, discussions have gathered pace in recent years regarding the arrangements for litigation funding and how much it can facilitate access to justice.
Indeed, the government has made it known that it plans to consider any recommendations brought forward by the Civil Justice Council – also known as the CJC. The CJC’s main objective is to ensure fair access to justice for all, according to the government’s judiciary website.
The CJC has recently released an interim report on the subject of litigation funding and is in the process of taking in people’s points of view on the subject via a public consultation.
Why should there be more regulation of litigation funding?
The European Parliament strongly encourages further regulation of litigation funding. Of course, it is hoped that improved regulation of litigation funding will allow more people to access funding to pursue legal claims. It is also argued that improved regulation will mean more transparency in this field of law, and will give the courts more ability to oversee the system as a whole. Some would also argue that the UK would take a market-led approach to litigation funding.
Fortunately, there are expert legal advisers aplenty who can assist those of us without legal backgrounds to access litigation funding and pursue claims, such as https://www.novo-modo.co.uk/litigation-funding.
It remains to be seen what the Civil Justice Council recommends in its report, but one thing is for certain: litigation is an essential part of a fair society and it stands to reason that a fair and transparent funding process is key to that end.
