| Introduction: Contextual Introduction Body: Highlight the potential of TPLF in improving access to justice and discuss regulatory frameworks Conclusion: Way forward |
India’s legal system, with over 40 million pending cases, faces immense challenges, particularly due to high litigation costs. For many, justice is unaffordable, making Third-Party Litigation Funding (TPLF) a potential game-changer.
Potential of TPLF in Improving Access to Justice in India
- Enhanced Access to Justice: TPLF opens courtroom doors for marginalized groups and financially weaker individuals, allowing them to fight cases they might have abandoned due to prohibitive costs.
- Equalizing Power Imbalances: TPLF can bridge the gap between resource-poor individuals and well-funded corporate or government opponents.
- Encouraging Public Interest Litigation (PIL): TPLF can fuel PILs in fields such as environmental protection and consumer rights, where litigation costs can be particularly high due to the need for expert testimony and extensive legal research.
- Boost to Complex Litigation Areas: Sectors like intellectual property rights (IPR) and medical malpractice, where litigation often involves specialized legal expertise and evidence, could benefit from TPLF.
- Economic Incentives for Funders: For investors, TPLF offers an attractive avenue for returns, incentivizing them to support legitimate claims with a strong chance of success.
Regulatory Framework for Ethical Implementation
- Licensing and Regulation of Funders: Funders should be licensed as financial service providers, similar to existing frameworks in other jurisdictions like Hong Kong’s Code of Practice for Third-Party Funding in Arbitration. This would ensure that only financially stable and reputable entities can engage in TPLF.
- Disclosure Requirements: TPLF agreements must be disclosed to the court and all parties involved. This ensures transparency regarding the involvement of third-party funders, allowing courts to assess potential conflicts of interest or undue influence.
- Protection of Plaintiffs’ Decision-Making Rights: Plaintiffs must retain control over case strategy, with funders playing an advisory role rather than determining the course of litigation. Courts must ensure that funding arrangements do not compromise the plaintiff’s autonomy.
- Encouraging Mediation and ADR: To prevent an overburdened judiciary, the framework should promote alternative dispute resolution (ADR) mechanisms such as mediation and arbitration, ensuring that funders do not drive cases to litigation unnecessarily.
Conclusion
Third-Party Litigation Funding has the potential to revolutionize access to justice in India, especially for marginalized groups, small businesses, and public interest causes. By doing so, the country can balance financial innovation with the constitutional dream of “justice for all,” turning the TPLF model into a powerful tool for social change.
