Civil Justice Council review of litigation funding – Law Society response
The review
The Civil Justice Council formed a working group on third-party litigation funding.
They asked for feedback on a number of broad areas, such as:
- whether third-party funding should be regulated and, if so, how that would be done and by whom
- the impact on access to justice from third-party funding
- the merits of self-regulation versus other types of regulation
- whether a cap should be imposed on the return that funders receive and, if so, what that should look like
- comparisons of third-party funding with other sources of funding
- the role of the court in controlling litigation that is supported by third party funding
- the impact of third-party funding on claimant protection
- the impact of third-party funding on the encouragement of litigation
The council has a statutory duty to review the civil justice system and make recommendations to the lord chancellor, judiciary and Civil Procedure Rule Committee on the development of the civil justice system.
Our view
The Civil Justice Council did not make any recommendations as part of its consultation process and we are waiting to see the evidence that emerges from this exercise.
As a first step, a stronger self-regulatory regime would be the most proportionate and effective way to combat perceived issues with litigation funding.
Consumer protection should be at the heart of any recommendations. There needs to be the correct balance between protecting those who seek and acquire litigation funding, with the ongoing ability for funders to operate effectively in England and Wales.
We urge caution when considering blanket rules for funded cases. Individual cases should be assessed on their own merits and powers granted to the courts to ensure proper conduct of litigation, including proportionality of costs and recoverability where appropriate.
What this means for solicitors
Members who work with litigation funders and clients who have their legal case funded by a third party are likely to see changes to the way that third party funding is conducted.
These changes will be based on the findings of this consultation and subsequent work by the council’s working group.
Next steps
Submissions to the Civil Justice Council closed on 31 January 2025.
The working group is looking to produce a final report by summer 2025.
Get involved
Download our full response: Law Society response to the Civil Justice Council’s review of litigation funding consultation (PDF 231.8 KB)