The government of Australia’s biggest state, New South Wales, “has moved to rein in litigation-funding companies and will ask other states this week to regulate a practice which they say offers few consumer protections. The Attorney-General, Bob Debus, says the firms — which fund court cases in return for a share of any payout — are not policed in the same way as lawyers and could undermine national laws governing the profession.” Among other concerns advanced by Mr. Debus, litigation funders could be in a position to “initiate, manage and influence the running of court cases” without submitting themselves to the consumer recourse available against lawyers themselves, and “could circumvent the prohibition on lawyers charging contingency fees.” (Michael Pelly, “State seeks greater control of firms funding litigation”, Sydney Morning Herald, Jul. 26). For more on litigation finance, see Aug. 4, 2003.
Oz: regulation of litigation finance eyed
The government of Australia’s biggest state, New South Wales, “has moved to rein in litigation-funding companies and will ask other states this week to regulate a practice which they say offers few consumer protections. The Attorney-General, Bob Debus, says the firms — which fund court cases in return for a share of any payout — […]
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