Lord Justice Jackson’s final report following his wide-ranging review of English civil litigation costs, published in January 2010
Jackson concluded that, in principle, third party funding is beneficial and should be supported, essentially for five reasons:
- It provides an additional means of funding litigation and, for some parties, the only means of funding litigation. Thus third party funding promotes access to justice
- Although a successful claimant with third party funding foregoes a percentage of his damages, it is better for him to recover a substantial part of his damages than to recover nothing at all
- The use of third party funding (unlike the use of conditional fee agreements) does not impose additional financial burdens on opposing parties
- Third party funding will become even more important as a means of financing litigation if success fees under conditional fee agreements are no longer recoverable
Third party funding tends to filter out unmeritorious cases, because funders will not take on the risk of such cases. This benefits opposing parties
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