As LFJ reported last week, the EU parliament’s decision to adopt a report which proposes increased regulation across the litigation funding industry may be a defining moment for the European market. Unsurprisingly, since the announcement, we have seen funders and lawyers alike criticise the proposed reforms as a backwards step for those seeking to widen access to justice.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
As LFJ reported last week, the EU parliament’s decision to adopt a report which proposes increased regulation across the litigation funding industry may be a defining moment for the European market. Unsurprisingly, since the announcement, we have seen funders and lawyers alike criticise the proposed reforms as a backwards step for those seeking to widen access to justice.
Reporting by City A.M. highlights comments by industry figures who argue that the proposals in the Voss Report will be a net negative for the legal industry in Europe. The International Legal Finance Association’s (ILFA) executive director, Gary Barnett, claims that these new regulations would only increase the cost burden for those seeking funding and therefore limit its availability.
Such concerns were echoed by legal professionals including David Greene, Edwin Coe’s head of finance litigation, who stated that a large portion of class action cases simply would never be brought without third-party funding, as these claimants often do not have access to capital to finance proceedings.
Managing director of Augusta Ventures, Robert Hanna, noted that if the EU does move forward with increased regulation for the industry, it will represent an opportunity for the UK to set itself apart as the prime jurisdiction for commercial litigation funding, as long as the UK does not also follow suit.
