Australian case highlights that funders, administrators, and lawyers reap the benefits while victims get nothing
24th Aug 2016
Victorian Attorney General Martin Pakula scrutinized the use of litigation funding following the distribution of a $5 million settlement to funders, administrators, and lawyers, leaving nothing for the 300 victims involved in the case.
The Australian reports that, “Mr. Pakula, who as a union official helped set up the insurance policy in the first place, said it was ‘staggering that any plaintiff could be awarded close to $5 million and have every last penny soaked up by fees from litigation funders, lawyers, and administrators’”. The article also reports that Attorney General Pakula has had preliminary conversations with the Victorian Law Reform Commission “regarding litigation funding and how litigants might be better protected from unfair risks or disproportionate cost burdens”.