When the framers of our Constitution established a judicial branch of government, they sought to establish courts of law in which aggrieved parties could seek redress and vindicate their natural rights; they did not intend to create gambling houses. Unfortunately, third-party litigation funding (TPLF) is undermining our civil justice system by turning it into a risky investment platform where investors can bet on litigation.
In a recent podcast interview with ALM reporter Ben Hancock, retired California federal Judge Vaughn Walker (who has teamed up with one of the largest TPLF companies, Bentham IMF) sought to dismiss concerns about the dangers of TPLF, stating that “[t]he litigation funding analysis is quite rigorous, and so I’m not concerned that it is a process that is likely to drive spurious litigation.” The U.S. Chamber Institute for Legal Reform respectfully disagrees.
