Lord Faulks: “Litigation funders are a growing threat to our justice system”
08th Jun 2017
Lord Faulks, former Minister of State for the Ministry of Justice, penned an op-ed in the Times, warning against the threat of third party litigation funding to the British civil justice system.
Faulks points out that a review of The Legal Aid, Sentencing and Punishment Offender Act of 2012 (LASPO) which is likely to occur following the election presents an opportunity for the review of the unregulated third party litigation funding industry.
Faulks states, “Access to justice is extremely important, but the state of the market means that there are real risks of abuse and disproportionately large sums are flowing into the coffers of litigation funders”. In his op-ed, Faulks suggests a few regulatory safeguards including the restriction of funder control of cases, transparency of funding agreements to judges and defendants, and licensing of funders through a government agency which can also impose meaningful and enforceable sanctions for violation.
Lord Faulks, also recently addressed this issue in the House of Lords.