Major research finds that litigation funding supports public interest

Litigation funding is increasingly recognised for its role in supporting access to justice and the public interest. Recent research highlights how this financial mechanism helps fund cases that might otherwise not proceed, benefiting individuals and groups seeking legal redress.

Understanding Litigation Funding

Litigation funding involves a third-party financier covering the legal costs of a case in exchange for a share of the proceeds if the case is successful. This arrangement enables parties without sufficient resources to pursue legal action, particularly in complex cases that require significant financial investment.

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Benefits of Litigation Funding for Public Interest

Litigation funding supports the public interest by allowing meritorious cases to proceed, thereby promoting justice and accountability. It plays a crucial role in enabling collective actions and consumer cases that hold corporations and entities accountable for wrongdoing. High-profile cases funded through this mechanism, such as those involving sub-postmasters and gig economy workers, not only resolve individual grievances but also enhance public awareness of legal rights.

Challenges and Risks Associated with Litigation Funding

Despite its advantages, litigation funding poses certain challenges and risks that require careful management. One concern is the potential for economic crime, as tracing the ultimate source of funds used by litigation funders can be difficult, especially when dealing with foreign entities.

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Moreover, the niche nature of litigation funding means that it only supports a small percentage of cases, with funders typically selecting those cases with a high likelihood of success. For more information on litigating funding, visit https://www.novo-modo.co.uk/ .

The Future of Litigation Funding

The future of litigation funding appears promising, particularly with potential legislative changes on the horizon. The proposed Litigation Funding Agreements (Enforceability) Bill 2024 could expand the role of litigation funding within the legal system, making it a more integral part of legal services provision. UK GOV  explains the bill in further detail and the implications it could have going forward through 2024 and beyond.

Litigation funding plays a vital role in supporting access to justice and the public interest, offering financial solutions for cases that might otherwise be inaccessible.