Our latest report, Establishing Fairness in Litigation Funding, provides a comprehensive analysis of the third party litigation funding (TPLF) industry in the UK, highlighting the alarming rapid growth of funding consumer cases and collective actions. It discusses the ethical and practical issues arising from TPLF, such as capital adequacy, fiduciary duties, control and influence over litigation, and the responsibility for adverse costs.
The paper proposes a suite of safeguards for fairness in litigation funding, including licensing and oversight, the establishment of fiduciary duties, and enhanced transparency and disclosure requirements, to protect funded parties and maintain the integrity of the civil justice system. The paper argues for legislative action to address these issues and suggests that the UK has the opportunity to lead globally by implementing comprehensive consumer protections that legitimize the funding industry while prioritizing the interests of justice and aggrieved parties.
