Litigation funders in the UK have been increasingly vocal about the potential for a surge in mass class actions, paralleling the rise in large-scale class actions in other prominent jurisdictions. New research demonstrates that whilst funders and law firms may be optimistic about these opportunities, the general public remain largely skeptical towards the practice, although certain signs point to increasing acceptance in some areas.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Litigation funders in the UK have been increasingly vocal about the potential for a surge in mass class actions, paralleling the rise in large-scale class actions in other prominent jurisdictions. New research demonstrates that whilst funders and law firms may be optimistic about these opportunities, the general public remain largely skeptical towards the practice, although certain signs point to increasing acceptance in some areas.
Reporting by The Law Society Gazette highlights forthcoming research by Portland Communications, which shows that majorities of respondents would support class actions where they were directly affected, especially where businesses have allegedly committed environmental harm. This was reflected by the fact that energy and finance were the two top industries where the public would favour class actions taking place.
However, a major stumbling block for class actions in the UK is that less than half of respondents felt class actions were likely to actually secure compensation or even had the capability to force companies or institutions to take accountability. More worryingly for the litigation finance industry, nearly a quarter of those surveyed said they would not join a class action where funders received a ‘large percentage’ of the award.
The survey suggests that a major hurdle for both lawyers and funders is the need to dispel the assumption that it is they who are the ones benefiting from class actions, rather than individual claimants.
