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12 September 2025 / Geoff Dover
Issue: 8130 / Categories: Features , Profession , Litigation funding
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Funding justice, not failure

Litigation funding must be ethical, transparent & aligned with the interests of those it is meant to serve: Geoff Dover sets out a better way forward
  • Recent high-profile law firm collapses have exposed structural and ethical failings in legal funding and litigation finance.
  • Law firms and funders must adopt transparent, aligned and sustainable funding models to rebuild trust.

The collapse of more than 15 consumer claims law firms in the past five years, including SSB Law and Pure Legal, has sent shockwaves through the sector. With over £400m in unpaid debts left in their wake, the damage has been financial, reputational and systemic. While litigation funding is under scrutiny—this summer’s Civil Justice Council working party report and its recommendations for tighter rules and Financial Conduct Authority registration for funders being the latest attempt to set a better path—the more pressing issue lies in the operational failures and incentives that led to such collapses.

To suggest that legal finance is inherently problematic would be a mistake. Funding remains a vital component

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MOVERS & SHAKERS

London Solicitors Litigation Association—John McElroy

London Solicitors Litigation Association—John McElroy

Fieldfisher partner appointed president as LSLA marks milestone year

Kingsley Napley—Kirsty Churm & Olivia Stiles

Kingsley Napley—Kirsty Churm & Olivia Stiles

Firm promotes two lawyers to partnership across employment and family

Foot Anstey—five promotions

Foot Anstey—five promotions

Firm promotes five lawyers to partnership across key growth areas

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
Family law must shift from conflict-driven litigation to child-centred problem-solving, according to a major new report. Writing in NLJ this week, Caroline Bowden of Anthony Gold outlines findings showing overwhelming support for reform, with 92% agreeing lawyers owe duties to children as well as clients
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