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New research shows litigation funding improves access to justice for some, but is difficult to scale up

The research was led by Queen Mary University of London’s Professor Rachael Mulheron KC and commissioned by the Legal Services Board to analyse whether litigation funding improves access to justice and strengthens consumer protection and regulation.

Published:
People outside the Royal Courts of Justice, London

Some of the findings of the report showed that in England and Wales:

  • Litigation funding allows individuals, SMEs, and corporations to access to justice, who would otherwise be unable to or unwilling to self-fund legal costs. However, litigation funders only choose between 3-5% of potential cases, meaning that this cannot be offered as a mainstream route to access justice without reforms.
  • Whilst litigation funding offers claimants their day in court, once the funders have taken their return, the compensation could be too small to address the detriment suffered. This is especially true if rectification costs occur. However, where used, litigation funding does facilitate litigation that could not have been funded by any other means.
  • Litigation funding has often been used in cases involving issues affecting a sizeable proportion of the population. This includes cases about broader consumer interests. These can go onto influence consumer markets, and the development and enforcement of the rule of law.

As part of the research, Rachael Mulheron KC, Professor of Tort Law and Civil Justice at Queen Mary, conducted a literature review, looking at previous research and reports, academic journals, books, legal magazines, online materials from litigation funders and law firms and other materials. She also conducted a ground-breaking empirical study, bringing to light previously unknown and unpublished information and data about litigation funding.

Read the full Report for more information about the study and its findings: A review of litigation funding in England and Wales: A legal literature and empirical study. You can also read the Legal Services Board’s press release.

The findings of the report were featured in the various legal media outlets including Legal Futures, Law Gazette, The Global Legal Post, and the Commercial Dispute Resolution magazine. The research has also been welcomed by Susan Dunn, Chair of the Association of Litigation Funders and Managing Director of LionFish Litigation Finance Ltd, Tets Ishikawa.

 

 

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