Justice not Profit’s call for action on litigation finance featured in The Guardian
16th Jul 2015
The Justice not Profit campaign’s call for action on regulation of abusive litigation and of litigation finance has been featured in an article in the Guardian by Owen Bowcott. Dr James Griffin, a senior lecturer at the University of Exeter said “I would like to see some regulation that prevents groups of companies getting together and trying to sue however they like. There needs to be some regulation in my area.” Similarly, Professor Richard Grimes, Director of Clinical Programmes at the University of York’s Law School, said “Consumers should get fair compensation. The question is if that will happen when there are no caps on funders’ fees.” Both are academic supporters of Justice not Profit.
Justice not Profit is concerned that U.S.-style class actions, including class actions with “opt-out” features, will increase the volume and coercive power of litigation, regardless of whether claims have any merit. Opt-out class actions have been introduced through the Consumer Rights Act 2015. The absence of adequate safeguards in the opt-out class action regime means it could be abused by significant third party litigation funding industry. Unreleased research shows that over £1.5bn in capital has been raised by UK-focused litigation finance firms to fund litigation. This wall of money threatens the integrity of the English justice system and undermines the investment climate, while the question can be asked if it really makes consumers better off.
Read the article at The Guardian.