Saturday, February 11, 2012

Third-Party Financing of Litigation: Report of Ethical Qualms in Australia

"Since Australia’s high court in 2006 gave litigation funding its stamp of approval, the industry has grown significantly. In a new report sponsored by the U.S. Chamber Institute for Legal Reform, an Australian law professor [Michael Legg of the University of New South {Wales}] takes a look at how the practice — where businesses invest in high-stakes legal disputes, sharing the risks and potential rewards — creates conflicts of interest.

The conflict argument has been made in the U.S., which is still feeling its way in the field, but Australia’s track record is longer. And the report concludes that the country’s experience should be a lesson to the legal community here [in the U.S.]."


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