header-logo header-logo

11 November 2022 / Roger Smith
Issue: 8002 / Categories: Opinion , Litigation funding , Regulatory
printer mail-detail

Third-party funding—regulation needed?

100256
It’s time to acknowledge that law, justice & the courts are being commoditised, says Roger Smith

Surprise, surprise. Third-party litigation funders and their associated lawyers are not too keen on regulatory proposals proceeding through the European Union (see ’Tough enough?’, NLJ, 21 October 2022, p20). The proposals were backed in September by the European Parliament. Brexit was, of course, intended to protect the UK from this sort of outrageous intrusion by the ‘nanny state’. But, even here and in the US, EU backing for statements such as ‘When litigation funders provide financing for legal proceedings in exchange for a share of any compensation awarded, a risk of injustice can arise’ might give rise to a chilling effect on a rapidly burgeoning market. Hence, the concern.

Heavyweight considerations

Third-party litigation funding has rather crept up on us. Lawyers are still practising (just) for whom the old prohibitions on maintenance and champerty formed part of their qualifying legal education. These were only abolished in 1967 after 500 years. Subsequent progress has been

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Katten Muchin Rosenman—Charlotte Hill

Katten Muchin Rosenman—Charlotte Hill

Katten strengthens financial markets and funds group in London

Hugh James—Keith Cundall & Lee Hart

Hugh James—Keith Cundall & Lee Hart

Hugh James expands national Serious Injury team with two new Partners

HFW—Rémi Ducloyer

HFW—Rémi Ducloyer

HFW continues Paris office growth with public law Partner hire

NEWS
The Court of Appeal's decision in Mazur v Charles Russell Speechlys LLP has lifted months of uncertainty for Chartered Legal Executives while prompting a rethink of regulation and supervision
The assisted dying debate returns to Westminster as Lauren Edwards MP reintroduces legislation that stalled in the House of Lords last session despite clearing the Commons
A little-noticed provision of the Crime and Policing Act 2026 has fundamentally expanded corporate criminal liability
Artificial intelligence is transforming legal practice, but careless reliance on it is creating growing professional risks
The law offers cohabiting couples surprisingly greater protection after one partner dies than when they separate during life
back-to-top-scroll