The United Kingdom is reportedly preparing to ease rules on litigation funding, overturning a controversial Supreme Court ruling. The move comes in response to growing concerns over access to justice, particularly for individuals and small businesses.
According to an article in the International Edition of Law.com, there are impending legislative changes. Moreover, the government has indicated that it is looking into a broader review of the sector, particularly concerning how third-party litigation funding is implemented.
Third-party litigation funding is a mechanism by which a party with no direct interest in a lawsuit provides finance to a litigant, usually in return for a portion of the winnings. Critics argue that this practice can lead to frivolous lawsuits or feed the ‘litigation culture’. Supporters, however, claim it levels the playing field for plaintiffs who would not otherwise be able to afford to take their cases to court.
The Supreme Court’s previous stance had imposed stringent restrictions on such funding. The anticipated policy change marks a significant shift, one which affirms the British government’s pledge to improve access to justice for all its citizens.
Given this development, legal practitioners, especially those involved in civil litigation, should keep a close eye on both the legislative changes and the wider governmental review.