{"id":138242,"date":"2024-10-17T20:38:22","date_gmt":"2024-10-17T15:08:22","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=editorial-analysis&#038;p=138242"},"modified":"2024-10-18T18:49:06","modified_gmt":"2024-10-18T13:19:06","slug":"reimagining-access-to-justice","status":"publish","type":"editorial-analysis","link":"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/reimagining-access-to-justice","title":{"rendered":"Reimagining access to justice"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Third-Party Litigation Funding (TPLF) offers a new approach that is a game-changer, potentially opening courtroom doors for many who have felt shut out.<\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>What is Third-Party Litigation Funding (TPLF)<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In India, many people face tough legal battles that they can&#8217;t afford. For example, tribal villagers in Odisha are trying to take on a big industrial company that is harming their environment. Their case is also strong, but they lack the money to fight it.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This is where Third-Party Litigation Funding (TPLF) comes in. <\/span><b>TPLF allows investors to pay for these legal battles in exchange for a share of any money won in the case.\u00a0<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The 1876 Privy Council judgement in <\/span><b><i>Ram Coomar Coondoo v. Chunder Canto Mookerjee<\/i><\/b><span style=\"font-weight: 400;\"> allows TPLF in India, rejecting old English champerty(which prohibited third-party funding of litigation) laws.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Benefits of Third-Party Litigation Funding (TPLF)<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Potential Equaliser<\/b><span style=\"font-weight: 400;\">: The SC in Bar Council of India v. A.K. Balaji described TPLF as \u201ca potential equaliser in the courtroom,\u201d.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The ruling emphasised that TPLF is permissible as long as lawyers are not the ones financing the cases.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improvement of Constitutional Guarantees<\/b><span style=\"font-weight: 400;\">: While the Constitution advocates for equality, its application often raises questions, for instance when wealthy individuals and middle-class litigants face off in court.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Facilitation of Specialized Litigation<\/b><span style=\"font-weight: 400;\">: In complex fields such as medical malpractice and intellectual property rights (IPR), TPLF ensures that valid claims are heard rather than being stifled by high litigation costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Consumer Protection<\/b><span style=\"font-weight: 400;\">: In metropolitan areas, TPLF empowers consumer groups to file lawsuits against food adulterators, ensuring market accountability and promoting enhanced safety standards.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For instance, the case of <\/span><b>Johnson &#038; Johnson&#8217;s talcum powder <\/b><span style=\"font-weight: 400;\">and asbestos contamination exemplifies the need for protections against product adulteration.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Empowerment of Tribes and NGOs<\/b><span style=\"font-weight: 400;\">: TPLF allows tribal communities, supported by NGOs, to challenge mining mafias, promoting environmental protection and safeguarding the rights of indigenous populations.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For example, the<\/span><b> Dongria Kondh tribe&#8217;s struggle<\/b><span style=\"font-weight: 400;\"> against the mining company, Vedanta.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhancement of Labour Rights<\/b><span style=\"font-weight: 400;\">: TPLF could empower labour groups to collectively address unjust practices, leading to improved working conditions and stronger protections for workers\u2019 rights across various sectors.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The 2016 case involving <\/span><b>Maruti Suzuki workers <\/b><span style=\"font-weight: 400;\">highlights the importance of such initiatives.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Support for Startups<\/b><span style=\"font-weight: 400;\">: TPLF provides Bengaluru\u2019s tech startups with the financial resources to withstand legal challenges from industry giants, allowing innovation to thrive without the fear of financial depletion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Addressing Pending Cases<\/b><span style=\"font-weight: 400;\">: TPLF can assist in tackling the current backlog of approximately 40 million pending cases across India, including around 80,000 cases at the Supreme Court.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhancing Corporate Accountability<\/b><span style=\"font-weight: 400;\">: TPLF promotes accountability among large corporations and entities by enabling individuals and groups to take legal action against malpractice or wrongdoing, thereby fostering a more just legal environment.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Challenges and Concerns<\/b><\/span><\/h2>\n<ul>\n<li><b>Cherry-Picking Cases<\/b><span style=\"font-weight: 400;\">: There is a risk that funders may prioritise more profitable cases, potentially neglecting socially significant but less lucrative claims.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">This can undermine the broader objective of TPLF to democratise access to justice.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Funder Influence<\/b><span style=\"font-weight: 400;\">: Concerns exist regarding the extent of control that funders should have over legal strategies.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Careful regulation is required to ensure that client interests remain paramount and that funders do not unduly influence case outcomes.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Need for Regulation: <\/b><span style=\"font-weight: 400;\">Although some Indian states, such as Maharashtra, Madhya Pradesh, Odisha, and Gujarat, have recognized TPLF, there is<\/span><b> currently no comprehensive national policy or regulation governing its implementation<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Proposed Measure<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Protecting Client Rights<\/b><span style=\"font-weight: 400;\">: Establish regulations that safeguard the rights of clients engaging with funders.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ensuring Financial Soundness and Ethical Behaviour<\/b><span style=\"font-weight: 400;\">: Assess and verify the financial stability and ethical conduct of funding entities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mandating Transparency<\/b><span style=\"font-weight: 400;\">: Implement measures that require transparency in funding agreements and limit funders\u2019 profit margins to prevent exploitation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Establishing a Dedicated Oversight Body<\/b><span style=\"font-weight: 400;\">: Create an oversight body to monitor funding arrangements and ensure compliance with regulations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Court Involvement<\/b><span style=\"font-weight: 400;\">: Determining the appropriate level of court oversight in TPLF agreements is essential.\u00a0<\/span><\/li>\n<li><b>International Best Practices<\/b><span style=\"font-weight: 400;\">: Hong Kong\u2019s 2019 Code of Practice for TPLF in arbitration requires disclosure and cost liability, ensuring transparency\u00a0 offering a model for India to consider.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC NCERT Textbooks From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Third-Party Litigation Funding offers a promising avenue to improve access to justice in India. A well-regulated framework can safeguard rights, while ensuring that financial innovation does not compromise judicial integrity.<\/span><\/p>\n<table style=\"width: 99.9987%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>Mains Practice:<\/b><\/span><\/p>\n<p><span style=\"color: #000000;\"><b>Q:<\/b><a href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/impact-of-tplf-on-access-to-justice-in-india\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> Critically examine the potential impact of third party litigation funding (TPLF) on access to justice in India. How might it address existing challenges in the legal system and what regulatory measures are necessary to ensure its ethical implementation while balancing financial innovation with the fundamental right to justice? 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