Sir Julian Smith

I beg to move, That this House has considered the Civil Justice Council’s review of litigation funding. It is a pleasure to serve under your chairmanship, Ms Harris. I refer the House to my entry in the Register of Members’ Financial Interests—until the summer, I was voluntary chair of the Centre for Effective Dispute Resolution. I pay tribute to Mr Justice Simon Picken and Dr John Sorabji, who co-chaired the review, along with each member of the working party and the Civil Justice Council secretariat. Third-party litigation funding plays an important role, enabling citizens in the UK and businesses to bring claims against larger and often better-resourced firms and organisations. Litigation funding involves an investment company that is not involved in a particular legal case providing all or a portion of the legal costs of a claim, in return for any damages awarded. The typical area in which litigation funding operates is in high-value commercial, arbitration or group litigation claims, particularly in the Competition Appeal Tribunal—a key route for competition-based group claimants to attempt to seek redress and, alongside the Competition and Markets Authority, one of two pillars of the UK’s globally recognised competition regime. Litigation funding provided financial resource for cases to be taken in the initial stages of the Post Office Horizon scandal, Bates v. Post Office, as well as providing resources in cases taken up against car manufacturers, such as one over false diesel emissions, cases focused on data breaches, those involving car financing and, most recently, a high-profile case last week involving Apple and charges for app use on the App Store.