Lord Chancellor Proposes New Law to Facilitate Public Access to Third-Party Funding for Legal Battles
The Lord Chancellor, Alex Chalk, has announced plans to introduce a new law aimed at streamlining the process for members of the public to secure financial support from third parties when pursuing complex legal claims against wealthy corporations with formidable legal resources that may be beyond their means.
Today’s development seeks to revert to the legal landscape that prevailed before a Supreme Court ruling last year, which rendered many litigation funding agreements unenforceable. This legislative move aims to ensure the continuity of funding for ongoing cases.
The proposed legislation is designed to simplify the process for individuals to obtain funding for their legal battles against influential corporations, such as those embroiled in the Horizon scandal.
Advocates for third-party litigation funding, including former sub-postmaster Alan Bates, who likened his case to a David versus Goliath scenario, have long called for such reforms. Bates and his fellow sub-postmasters were able to pursue their claims against the Post Office only with the support of a litigation funder.
Addressing the need for equitable access to justice, Lord Chancellor Alex Chalk remarked, “It’s crucial that victims have access to justice, but it can often seem like an unequal battle when they are up against powerful corporations with significant resources.”
“This significant change will enable more victims to secure essential third-party funding, leveling the playing field and empowering them to pursue justice,” Chalk added.
Following the successful use of third-party funding by the sub-postmasters in their legal battle against the Post Office, the proposed law aims to extend similar opportunities to others in need.
Moreover, the government is contemplating broader reforms within the sector and the regulation of third-party litigation funding. This includes potential measures to enhance oversight and safeguards for individuals navigating the legal system, especially considering the expansion of the litigation funding sector in recent years. Further details on this broader review will be disclosed in due course.