The future of the litigation funding marketplace in Australia is a hot topic of late. Canberra (Australia’s capital city) is putting pressure on litigation investor returns by suggesting a 30% cap on the ROI of litigation agreements. Citics of Canberra’s blanket move are furious, many alluding that any such mandate will stifle access to justice.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
The future of the litigation funding marketplace in Australia is a hot topic of late. Canberra (Australia’s capital city) is putting pressure on litigation investor returns by suggesting a 30% cap on the ROI of litigation agreements. Citics of Canberra’s blanket move are furious, many alluding that any such mandate will stifle access to justice.
The Australian Senate’s Economics Legislation Committee recently published a 71 page report that explores an amendment to improve litigation funding regulation in the country. The legislators who authored the report suggest they are working to solve a problem of Australian attorneys taking the lion’s share of class action lawsuit rewards. Canberra’s report seems to suggest that every Australian should have access to justice and the associated monetary awards of litigation success.
Senators look to empower courts with decision making powers on approval of any litigation funding agreement and associated distribution structure. Likewise, Australia’s common litigation fund currently offers various economic benefits to those in need. Senators allude to the common fund’s assets being utilized to pad attorney returns, in some instances.
As the litigation finance regulation journey unfolds in Australia, the government’s report offers Canberra’s frame of mind on the subject.
