The proposed regulation of Third Party Litigation Funding – much ado about nothing?

Susanne Augenhofer, Adriani Dori

Research output: Contribution to journalArticleProfessionalpeer-review

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Abstract

Access to justice comes at a cost, often creating a significant gap between litigants due to financial disparities. This can impede the enforcement of rights and provide a shield of impunity for alleged wrongdoers. In response, the global third-party litigation funding (TPLF) market has emerged and is rapidly growing worldwide, providing a lifeline for potential plaintiffs who lack the means to pursue legal actions independently. This win-win scenario facilitates access to justice for plaintiffs while offering profitable investment opportunities for funders. However, the complexity of the TPLF market and the different private and public interests involved present challenges in devising a comprehensive regulatory framework. Striking the right balance between regulatory measures and fostering a thriving TPLF market is a delicate task, as overly stringent regulations may stifle the market and limit access to justice. Against this backdrop, this paper examines the worldwide expansion of the TPLF industry and critically evaluates existing and proposed European legislative measures for regulating the TPLF market in the Union.
Original languageEnglish
Pages (from-to)198-209
Number of pages11
JournalZeitschrift für das Privatrecht der Europäischen Union
Volume20
Issue number5
DOIs
Publication statusPublished - 15 Oct 2023

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