Trading in Legal Claims

Law, Policy & Future Directions 
in Australia, UK & US

- by Dr Vicki Waye - 

 


- Table of Contents -

Table of Cases

Table of Statutes

Ch 1: Markets for Legal Claims: An Introduction

Introduction

Markets

Alienability of Legal Claims

Access to Justice

Overview of Chapters

 

Ch 2: Transferability of Legal Claims: Legal & Economic Theory

Introduction

Efficiency and Alienability of Legal Claims

    A Market for Pre-Injury Claims

    A Market for Post-Injury Claims

Can a Robust Legal Claims Market be Established?

Normative Concerns

    Access to Justice & Proliferation of Claims

    Commodification of Justice

    Adverse Impact on Lawyer-Client Relationship

    Protection of Ingenuous Claim Owners

Conclusion

 

Ch 3: Alienability of Legal Claims: Australia

Introduction

Legal Claims as Transferable Property Rights

Broadening Avenues of Litigation Funding

Balancing Access to Justice & Litigation Trafficking

Position of Professional Litigation Funders

Claim Alienability

Conclusion

 

Ch 4: Alienability of Legal Claims: England

Introduction

Access to Justice Policy in England

Advent of Large Claims Management Companies

Capping of Costs, Success Fees and Insurance Premiums

    Guidelines for Success Fees & ATE Premiums

    Introduction of Fixed Recoverable Costs and Success Fees

    Cost Estimates, Budgeting & Capping

    Costs Limits & Access to Justice

Contingency Fees

Common Law Developments

    Wanton and Officious Intermeddling and Trafficking in Claims

    Litigation Funding

    Broadening Exemptions to Prohibitions on Financing & Assignment

     Summary of Common Law Position

Conclusion

 

Ch 5: Alienability of Legal Claims: United States

Introduction

Maintenance and Champerty

Assignability

Usury

Structured Settlements

Markets for Legal Claims

 

Ch 6: Regulation of Markets for Legal Claims

Introduction

Regulation & Market Failure

Market & Monopoly Power

Externalities

Public Goods

Co-ordination Problems

Inequality of Bargaining Power

Shortcomings of Economic Modelling

    Information Asymmetry

    Bounded Rationality

Unconscionability

Current Regulatory Framework & Further Regulatory Options

    Mandatory Provision of Information - Current Frameworks

    Mandatory Provision of Ex Ante Legal Advice - Current Frameworks

    Licensing - Current Frameworks

    Mandatory Cooling Off - Current Frameworks

    Self-regulation & Co-regulation - As Alternatives

    Default Rules & Codes of Conduct - As Alternatives

Conclusion

 

Ch 7: Abuse of Process, Costs & Secondary Sales

Introduction

Abuse of Process

    Australia – Stays of Proceedings
    England – Abuse of Process

Costs

    Cost-shifting Rule
    Litigation Funders’ Liability for Costs
    Security for Costs

Obligations upon Assignees

Secondary Sales

 

Ch 8: Conflict of Interest between Claimholders,
Lawyers & Litigation Entrepreneurs

Introduction

Relationship between Practitioner and Claim Holder

    Agency Theory
    Current Regulation of Legal Profession

    Relationship between Funders and Practitioners

Relationship between Claim Holder & Funder

Conflict Typology & Resolution

Multiple Claim Holders

    Collusion between Practitioner, Defendant & Funder

    Free Rider Problems

    Dealing With Conflicts of Interest Between Class Members

Duties to Court and Justice

Conclusion

 

Ch 9: Concluding Thoughts

 

Appendix

Index