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

NLJ Career Profile: Daniel Burbeary, Michelman Robinson

NLJ Career Profile: Daniel Burbeary, Michelman Robinson

Daniel Burbeary, office managing partner of Michelman Robinson, discusses launching in London, the power of the law, and what the kitchen can teach us about litigating

Sidley—Jeremy Trinder

Sidley—Jeremy Trinder

Global finance group strengthened by returning partner in London

Joelson—Jennifer Mansoor

Joelson—Jennifer Mansoor

West End firm strengthens employment and immigration team with partner hire

NEWS
Cheating in driving tests is surging—and courts are responding firmly. Writing in NLJ this week, Neil Parpworth of De Montfort Law School charts a rise in impersonation and tech-assisted fraud, with 2,844 attempts recorded in a year
As AI-generated ‘deepfake’ images proliferate, the law may already have the tools to respond. In NLJ this week, Jon Belcher of Excello Law argues that such images amount to personal data processing under UK GDPR
In a striking financial remedies ruling, the High Court cut a wife’s award by 40% for coercive and controlling behaviour. Writing in NLJ this week, Chris Bryden and Nicole Wallace of 4 King’s Bench Walk analyse LP v MP [2025] EWFC 473
A €60.9m award to Kylian Mbappé has refocused attention on football’s controversial ‘ethics bonus’ clauses. Writing in NLJ this week, Dr Estelle Ivanova of Valloni Attorneys at Law examines how such provisions sit within French labour law
A seemingly dry procedural update may prove potent. In his latest 'Civil way' column for NLJ this week, Stephen Gold explains that new CPR 31.12A—part of the 193rd update—fills a ‘lacuna’ exposed in McLaren Indy v Alpa Racing
back-to-top-scroll