Has a reduced appetite for risk among investors following the recession, combined with proposals for restrictions on the activities of litigation funders supported by Lord Justice Jackson, sounded the death knell for third party funding of large scale commercial litigation in the UK?
Has a reduced appetite for risk amongst investors following the recession, combined with proposals for restrictions on the activities of litigation funders supported by Lord Justice Jackson, sounded the death knell for third party funding of large scale commercial litigation in the UK?
At the outset of the credit crunch it seemed that third party funding of litigation might emerge as a viable option for those investors looking for a new type of asset class. The theory went that hedge funds and institutional investors could agree to fund all or part of a claimant's legal costs in exchange for a percentage of any damages ultimately paid out. As the economic turmoil spread, many commentators were quick to point out that there was an increased likelihood that companies would look to recoup losses
