Will third-party funding level the litigation playing field? ask Charles Ciumei and Paul Bury
The low number of private damages actions for breach of competition law rules has long been a concern of regulators and practitioners in the EU and the UK. One of the main problem areas is the difficulty that many potential litigants face in obtaining funding for private actions due to the high costs and high risks involved. In November 2007, the Office of Fair Trading (OFT) published its recommendations to facilitate private actions by businesses and consumers (OFT916, Private Actions in Competition Law: Effective Redress for Consumers and Businesses). To address the issue of funding, the OFT recommended that “third-party funding is an important potential source of funding…[and] should be encouraged”.
Previously, little attention was paid to the possibilities of third-party litigation funding in the UK, which was largely confined to insolvency cases and was viewed by many with scepticism. However, the OFT's recommendations are part of a significant change in attitudes to third-party litigation funding, following the case of Arkin v Borchard Lines Ltd and others
