Civil Justice Council establishes review of third party litigation funding

As anticipated, the Civil Justice Council (CJC) has taken up the government's invitation to conduct a review of the litigation funding sector (as flagged in our previous blog post). Its announcement yesterday said that the group, co-chaired by Mr Justice Simon Picken and Dr John Sorabji, would look to provide an interim report by summer 2024 and a full report by summer 2025.

The working group has invited expressions of interest to join a wider consultation group, which will "directly inform the work of the review and provide a larger forum for expert discussion in support of the working group". The announcement indicates that there will also be a further chance for all to engage formally with the review later this year, presumably once the interim report is published.

The review will set out the current position in relation to third party funding (TPF), including the current self-regulatory approach and approaches to regulation in other jurisdictions. It will explore whether the current arrangements for TPF deliver effective access to justice, and will identify possible alternatives and limitations.

Most importantly, however, the group will make recommendations for reform, where appropriate, including as to:

• Whether and how / by whom TPF should be regulated;
• Whether and, if so, to what extent a funder’s return should be subject to a cap;
• How TPF should be best deployed relative to other sources of funding;
• The court's role in controlling the conduct of litigation supported by TPF;
• The relationship between TPF and litigation costs;
• Duties concerning the provision of TPF, including potential conflicts of interest;
• Whether funding encourages specific litigation behaviour such as collective action.