Royal Court’s Approval Of Third Party Funding Improves Access To Justice

The Royal Court of Jersey's approval of third party funding has given businesses and individuals in the Island improved access to justice.

In a recent judgment (In the Matter of the Valetta Trust), the Royal Court has given its approval, in principle, to third party funding arrangements, facilitating access to justice in the Jersey courts by plaintiffs (claimants) who would not otherwise be able to bring a claim. This development takes on added importance in these times of recession where the legal costs associated with pursuing litigation can often be prohibitive.

So what is third party funding? It is where someone who has no connection with the dispute provides financial support for litigation on the basis that they receive a percentage of the sums recovered if the action succeeds, but nothing if the action fails. Historically such arrangements were considered unlawful in the UK but in recent years the English courts have taken the view that third party funding