The litigation funding market in the UK has grown rapidly in recent years, as solicitors and their clients increasingly accept funding arrangements as promoting access to justice. Indeed in Scotland, Restitution Ltd, the country’s only independent litigation funder, recently secured a win for a case that would never have made it to court without funding available.
A Scottish businesswoman, despite being a major shareholder and director, found herself systematically excluded from her family business. The other shareholder did this in the knowledge that she was not financially secure and did not have the means to pay for a legal team to raise a court action against him. Unfortunately for him, her solicitor - Yvonne Morgan of Morgan Legal - recognised that her client had a strong case and approached Restitution Ltd.
Restitution Ltd funded the case and the lady successfully raised an action against her fellow shareholder, which she won. She received a substantial settlement for her share of the business.
Over the last 10 years there has been a substantial reduction in cases raised in the Scottish court system, there are many reasons for that, and often because individuals, companies and other entities are unable to pursue actions due to the costs of litigation. All too often individuals get away with the kind of behaviour this shareholder displayed, as people simply can’t afford to contest it.
With companies like Restitution Ltd investing in cases, which may otherwise be dropped, they allow the underdog a fighting chance of achieving justice.
This article appeared in Scottish Legal News