Law.com - U.K. Corporations Break Ground With Third-Party Funding to Defend Major Claims

Law.com - U.K. Corporations Break Ground With Third-Party Funding to Defend Major Claims
I suppose this article on third-party litigation funding gets to this blog on globalization of legal services because third-party litigation funding is a phenomenon that seems to have started in the UK, where it is also possible for non-lawyers to have an ownership interest in law firms.

I am not sure third-party litigation funding is a positive development or a welcome develpment. When you have third-parties funding litigation costs, hedge funds undertaking part of the risk for a fee, and so on, before long, the litigation process is going to become a means for financial speculation rather than, what it should be, namely, a means of resolving, as fairly and as efficiently as possible, a dispute that the real parties at interest cannot resolve for themselves.

When you start to introduce extraneous financial considerations and financial speculation into the litigation process, the real purpose of litigation can quickly become secondary. Such circumstances can clearly lead to abuse and ultimately disrespect for our legal system. Thus, this is a potentially alarming trend that needs to be watched closely and eliminated swiftly, if the evidence suggests this is warranted. Litigation should always be considered a last resort between the real parties at interest. It should not be an opportunity for third parties to profit from the misfortune of the real parties at interest.