Europe, UK (Commonwealth Union) – The Ministry of Justice (MoJ) in the UK recently took a significant step to assist individuals taking on major corporations.
The Lord Chancellor, Alex Chalk, is set to introduce a new law aimed at facilitating public access to financial support from third parties when pursuing legal action against affluent corporations with formidable legal resources, which would otherwise be financially unattainable for them.
The recent announcement aims to reinstate the legal landscape prior to last year’s Supreme Court ruling, which rendered many litigation funding agreements unenforceable, thereby enabling continued financial backing for ongoing cases.
This legislation streamlines the process for individuals to obtain funding for their legal battles against influential corporations, such as those embroiled in the Horizon scandal.
The initiative responds to calls from individuals who have previously relied on third-party litigation funding, including former sub-postmaster Alan Bates, who likened his case to a David versus Goliath scenario. The litigation funding was indispensable for the postmasters’ claim to proceed.
Lord Chancellor, Alex Chalk, says “It’s crucial victims can access justice – but it can feel like a David and Goliath battle when they’re facing powerful corporations with deep pockets.”
“This important change will mean more victims can secure vital third party funding to level the playing field and support their fight for justice.”
Lord Chancellor, Alex Chalk, further indicated that the sub-postmasters have successfully obtained third-party funding for their legal battle against the Post Office, paving the way for others to follow suit.
Additionally, the government is exploring potential avenues for a comprehensive review of the sector, focusing on the mechanisms of third-party litigation funding. This review may assess the necessity for heightened regulation or protections for individuals initiating legal claims, especially considering the expansion of the litigation funding industry in recent years. More specifics are set to be disclosed in the future. The legislation is to apply in England and Wales.
