Commercial Dispute Resolution comments on CORLA’s LIDW25 debate: Class actions and funding – a blessing or a curse?

Opinions were divided on the UK’s collective redress regime during LIDW, with some lawyers hailing it as improving access to justice, but a vociferous contingent have concerns about their effectiveness.

Many solicitors and barristers used London International Disputes Week (LIDW) as a platform to come out in favour of class and group actions in the UK, but others were critical of the unintended consequences of the system.

With the loss of civil legal aid causing “huge unfairness” to people of modest means who are unable to fund litigation themselves, it might be natural to start from the position that class actions and funding are a curse, said Patrick Green KC, barrister at Henderson Chambers said in a claimant v defendant-style debate hosted by the Collective Redress Lawyers Association (CORLA). “That situation might be seen as a bit of a curse on society. But looking at the access to justice issue, how do people who have suffered serious unlawful conduct bring cases against well-funded defendants?” He acknowledged the need for improvements, “but we are on the right road. [There is the argument] that people bringing group claims don’t end up getting their full compensation. But remember, we’re starting from a position where lots of people can’t even bring a claim”.

David Greene of Edwin Coe and co-president of CORLA, said class actions fill a need, in the absence of a proper regulatory framework for individuals: “We’re not saying all corporates are involved in wrongdoing, 99.9% are not. But for those that are wronged, there has to has some balance where they can shine a light on misconduct and secure access to justice, and that will involve some form of third-party funding. So, I say it is a blessing.”