In a recent 60 Minutes piece on Litigation Funding they discussed both Commercial Litigation Funding; where the funds are used to pay for the legal/litigation process, and Consumer Legal Funding; where the funds are provided to the consumer for their household needs, such as rent, mortgage and putting food on the table.
One of the issues that was brought out in the story is that the industry is largely unregulated. What is interesting is that from 2005 to 2022 thirty-seven (37) states have introduced legislation to regulate the Litigation Funding.
But whenever the industry tries to introduce such legislation, we are hit with major opposition from our detractors. They oppose any regulation because it “legitimized the industry”. Are they saying that an industry that allows consumers to financially survive while their legal claim makes its way through the legal process is illegitimate? Or are they saying that a company that is trying to level the playing field for consumers should not be allowed to operate?
In fact they have tried to outright ban the practice in several states. How is a ban regulation?
The Alliance for Responsible Consumer Legal Funding (ARC), and its member companies, have always supported, and in fact encouraged, proper regulation of the industry. From the beginning ARC has set up a strong set of Best Practices that ensured the both the consumer and the companies are protected. We have strived to have those Best Practices put into legislation in states like in Nebraska, Ohio, Oklahoma, Utah, and Vermont to name a few.
Consumer Legal Funding allows everyday citizens to get the fair value of their legal claims while they are making their way through the complicated legal process.
Access to Justice should not depend upon who has the deepest pocket. It should be on the merits of the legal claim.
Remember what is written on the entrance to the United State Supreme Court
“EQUAL JUSTICE UNDER LAW“