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Commercial Third-Party Funding Litigation: Overseas Experience and Practice in China

CHEN Wen-jing   

  1. (Center for Rule of Law Strategy Studies,East China University of Political Science and Law, Shanghai 201620,China)
  • Received:2018-11-25 Online:2019-04-26

Abstract: Because of the high cost of litigation, long trial cycle and uncertain outcome of litigation, the parties often give up litigation because of economic pressure and litigation risk.Under the limited role of legal aid and judicial assistance, how to transfer litigation costs and reduce litigation risks so as to realize rights relief is an urgent problem to be solved in practice.In recent years, many commercial organizations in China have begun to practice the mode of commercial third-party funding litigation by drawing lessons from the overseas third-party funding litigation system. They have solved the problem of “litigation expensive” by prepaying related litigation costs for the parties. However, their specific implementation paths and supporting regulatory measures are still in the exploratory stage, and there is no unified norm.In view of this, our country should adopt a prudent attitude in the specific application of third-party funding litigation, and draw lessons from overseas practice and supervision experience to provide basic norms and guidance for the development of the industry, so that it can not only provide practical help for the parties to realize their right to sue, but also avoid the “barbaric growth” of the industry.

Key words: third-party funding litigation, judicial remedy, litigation costs, litigation risk