Ahead of this summer’s General Election, there was much debate about a proposed Litigation Funding Agreements Enforceability Bill.
The idea of the bill is that the government backs a litigation funding regime. Because the process of litigation can be so costly, finances become a barrier to many people seeking justice. The aim of this bill is to make funding options transparent and to make the UK’s legal sector continue to be one of the fairest in the world.
Justice Minister Lord Ponsonby revealed the delay, citing the need for greater regulation of LFAs or Litigation Funding Agreements and safeguards for claimants. While he was of the opinion that there is a need to ensure fair funding for all litigation claims, there have been concerns about some LFAs being considered damage-based agreements which are the subject of review to ensure they are fair and just.
What has happened?
But unfortunately, while the bill was introduced quite promptly in the spring, it did not get as far as being adopted in Parliament. And with the change in the UK government from Conservative to Labour just a few months ago, plans to adopt the bill have been shelved until at least next summer when a review into funding reports will take place, according to legal experts Pinsent Masons.
What are the implications?
This is something of a blow to there being a universally accessible funding system for all potential claimants in the UK, but it can’t be disputed that litigation continues to be an important part of our legal system. For anyone considering starting the process of litigation, seeking expert advice on your claim can often lead to funding options which means that your litigation claim can go ahead.
Litigation finance specialists such as Novo Modo can offer advice on finding litigation funding and discuss all of the different possibilities with you.
Options include third-party funding, trade union funding or no-win, no-fee agreements. There are also various insurance options available to people looking to cover the costs of litigation.