Ponsonby: Funding has a critical role in access to justice
The government has shelved reintroducing the Litigation Funding Agreements (Enforceability) Bill until after the Civil Justice Council (CJC) has completed its review of funding next year.
Justice minister Lord Ponsonby revealed the plan in response to a question from Lord Sandhurst (Guy Mansfield KC), who was a vocal supporter of the bill, which was introduced by the last government to reverse the impact of last year’s Supreme Court ruling in PACCAR.
However, the bill did not make it through Parliament before the election was called and, unlike some other bills which met the same fate – such as the Arbitration Bill – it was not included in the new government’s legislative agenda.
Lord Ponsonby said the government “recognises the critical role third-party litigation funding plays in ensuring access to justice”.
He continued: “Following the PACCAR judgment, concerns have been raised about the need for greater regulation of litigation funding agreements, or greater safeguards for claimants.
“The government is keen to ensure access to justice in large-scale and expensive cases, whilst also setting up adequate safeguards to protect claimants from unfair terms.
“The Civil Justice Council is considering these questions and others in its review of third-party litigation funding, and hopes to report in summer 2025. The government will take a more comprehensive view of any legislation to address issues in the round once that review is concluded.”
The CJC review was initially announced as an adjunct to the bill, with Mr Justice Simon Picken and Dr John Sorabji named as its chairs in April.
The stated aim was to produce an interim report this summer and a final report next summer.
Neil Purslow, chairman of the International Legal Finance Association and chief investment officer at funder Therium, said: “It’s deeply disappointing the government has taken the decision to seemingly deprioritise access to justice for people like the sub-postmasters by kicking the can down the road. As the justice secretary herself has said, ‘justice delayed is justice denied’.
“When people like Alan Bates, a former Lord Chief Justice, and politicians from across the political divide are all united in backing a fix, it’s difficult to understand why the government won’t bring forward a simple and speedy solution for the benefit of claimants and the wider legal sector.
“The issues are clear, the solutions are known, and the need is urgent. The government needs to take action now to restore the UK’s position as a global leader in legal services and access to justice.”
The PACCAR case related to the funding of a case before the Competition Appeal Tribunal, which has been approving rewritten agreements since the ruling. It has given permission to appeal in a number of cases, however.
A separate review earlier this year commissioned by the Legal Services Board found that litigation funding supports the public interest and access to justice but will remain niche in aiding consumers.
Leave a Comment