Third-Party Litigation Funding: Legal Feasibility and Insights from Australia, the UK, and the US for Expanding Access to Justice in Indonesia
DOI:
https://doi.org/10.28946/slrev.Vol9.Iss1.3444.pp173-193Keywords:
Third Party Litigation Funding, Access to Jus-tice, Litigation.Abstract
Access to justice is often hindered by financial constraints, preventing plaintiffs from pursuing legal claims. Third-Party Litigation Funding (TPLF) offers a potential solution by allowing external funders to finance litigation in exchange for a share of any awarded damages or settlement. By covering litigation costs, TPLF enables financially disadvantaged plaintiffs to seek legal redress, making it a crucial mechanism for expanding access to justice. However, unregulated TPLF poses risks, including the encouragement of frivolous claims, ethical concerns, and profit-driven motivations that may override legal merit. Indonesia currently lacks specific regulations governing TPLF, raising questions about its legal permissibility and practical implementation. This study examines TPLF frameworks in Australia, the United Kingdom, and the United States to derive insights that may inform the development of TPLF practices in Indonesia. Utilizing a normative legal research methodology based on secondary data, the study explores the opportunities and challenges of introducing TPLF into the Indonesian legal system. The findings indicate that while TPLF can be legally accepted in Indonesia, its application should be restricted to cases with broad public interest, such as environmental and consumer litigation. Furthermore, Indonesia’s ongoing efforts to enhance access to justice and the absence of explicit legal prohibitions present opportunities for the regulated adoption of TPLF. This research contributes to the discourse on litigation funding by providing recommendations for policymakers, legal practitioners, and stakeholders in shaping a fair and regulated TPLF framework in Indonesia.References
Adhitya Bagus Kuncoro. “Proceedings of the 3rd International Conference on Globalization of Law and Local Wisdom: Consumer Protection Based on Justice in Order to Advance State Administration System in Indonesia.†Atlantis Press, 2019.
Agus Raharjo, et al. “Access to Justice for the Poor (Dilemma in Providing Legal Aid by Ad-vocates) [Akses Keadilan Bagi Rakyat Miskin (Dilema Dalam Pemberian Bantuan Hukum Oleh Advokat)].†Jurnal Mimbar Hukum 27 (October 2015).
Arkin v. Borchard Lines, Ltd, No. [2005] WLR 3055 (n.d.).
Article 3 of Indonesian Law No. 16 of 2011 concerning Legal Aid (n.d.).
Article 3 of the Supreme Court Regulation of the Republic of Indonesia Number 3 of 2017 concerning the Guidelines for Adjudicating Women’s Cases in Conflict with the Law (n.d.).
Article 22 paragraph (1) of Indonesian Law No. 18 of 2003 concerning Advocates (n.d.).
Article 23 of Indonesian Law No. 8 of 1999 concerning Consumer Protection (1999).
Brookfield Multiplex Ltd v International Litigation Funding Partners Pte Ltd (Federal Court of Australia November 4, 2009).
Bryan Garth. “Access to Justice: The Newest Wave in the Worldwide Movement to Make Rights Effective.†Buffalo Law Review 27 (1978): 182.
Campbells Cash and Carry Pty Limited v Fostif Pty Limited Australian Liquor Marketers Pty Limited v Berney IGA Distribution (Vic) Pty Limited v Whelan & Hawking Pty Lim-ited Queensland Independent Wholesalers Pty Ltd v Murray IGA Distribution (SA) Pty Limited v Neindorf Composite Buyers Pty Limited v Williamson IGA Distribution Pty Limited v Gow (High Court of Australia August 30, 2006).
Campbells Cash and Carry Py Limited v. Fostif Pty Limited, No. [2006] HCA 41; 229 CLR 386; 80 ALJR 1441; 229 ALR 58 (High Court of Australia August 30, 2006).
Carissa T. A. Temenggung and Yetty Komalasari Dewi. “Pendanaan Pihak Ketiga (Third Party Funding) Dalam Penyelesaian Sengketa Melalui Arbitrase Dan Kemungkinan Penera-pannya Di Indonesia.†Jurnal Hukum & Pembangunan 50 (2020).
Charles Makanyeza, et al. “The Effect of Consumer Rights Awareness on Attitude and Pur-chase Intention in the Hotel Industry: Moderating Role of Demographic Characteris-tics.†Cogent Business & Management 8 (n.d.).
Christopher Hodges OBE. “Litigation Funding: Status and Issues.†Oxford Legal Studies Re-search Paper, 2012.
Christopher Mendez. “Welcome to the Party: Creating A Responsible Third-Party Litigation Finance Industry to Increase Access and Options for Plaintiffs.†Mississippi College Law Review 39 (2021): 102–3.
Collin R. Flake. “Third Party Funding in Domestic Arbitration: Champerty or Social Utility?†Dispute Resolution Journal 70 (2015).
David Nicholson. Environmental Dispute Resolution in Indonesia. Leiden: Brill, n.d.
Dio Ashar Wicaksana, et al. Index of Access to Justice in Indonesia in 2019. First edition, March 2020: Translation version. Civil Society Consortium for the Index of Justice consist of Indonesia Judicial Research Society (IJRS), 2019.
Earglow Pty Ltd v Newcrest Mining Limited, No. [2016] FCA 1433 (Federal Court of Austral-ia November 28, 2016).
Elizabeth Korchin, et al. The Third Party Litigation Funding Law Review. Fourth Edition. Unit-ed Kingdom: Law Business Research Ltd, 2020.
Excalibur Ventures LLC v Texas Keystone Inc. and Others, No. [2016] EWCA Civ 1144 (n.d.).
Indonesian Civil Code (n.d.).
Indonesian Law No. 16 of 2011 concerning Legal Aid (n.d.).
Indonesian Law No. 32 of 2009 concerning Environmental Protection and Management (n.d.).
International Litigation Partners Pte Ltd v Chameleon Mining NL (Receivers and Managers Appointed) (High Court of Australia October 5, 2012).
Jarret Lewis. “Third-Party Litigation Funding: A Boon or Bane to the Progress of Civil Jus-tice?†The Georgetown Journal of Legal Ethics 33 (n.d.).
Jason Geisker and Jenny Tallis. The Third Party Litigation Funding Law Review. Second Edi-tion. United Kingdom: Law Business Research Ltd, n.d.
John L. Ropiequet. “Current Issues in Consumer Litigation Funding.†Banking & Financial Services Policy Report 33 (2014).
Justice Sarah Derrington. “Speech to Australian Academy of Law Lecture.†Brisbane, October 14, 2018.
Lawsuit Funding LLC v Lessoff, No. 650757/2012 (Supreme Court New York Country De-cember 4, 2013).
Leander Beinlich. “Access to Justice.†Max Planck Institute for Comparative Public Law & In-ternational Law, July 29, 2021, 1–2.
Liverpool City Council v McGraw-Hill Financial, Inc (now known as S&P Global Inc), No. [2018] FCA 1289 (n.d.).
London and Regional (St George’s Court) Ltd v Ministry of Defence, No. [2008] EWHC 526 (TCC) (March 18, 2008).
M. Syamsudin. “The Failure of the Court to Protect Consumers: A Review of Consumer Dis-pute Resolution in Indonesia.†Journal of Consumer Policy, 2020.
Maria S. W. Soemardjono. “Bahan Kuliah Metodologi Penelitian Ilmu Hukum.†Universitas Gadjah Mada, 2014.
Marudut Tampubolon. Dissecting the Advocate Profession, Social Science Perspective of Advo-cate-Client Interaction [Membedah Profesi Advokat, Perspektif Ilmu Sosial Interaksi Ad-vokat-Klien]. Yogyakarta: Pustaka Pelajar, 2014.
Matthew Amey. “Third Party Litigation Funding in England and Wales: An Overview.†Thom-son Reuters Practical Law (blog), n.d. Accessed July 11, 2022.
Mauro Cappeletti. “Alternative Dispute Resolution Processes Within the Framework of the Worldwide Access-to-Justice Movement.†The Modern Law Review 56 (1993): 283–84.
Maya Steinitz. “Whose Claim Is This Anyway? Third-Party Litigation Funding.†Minnesota Law Review 95 (2011): 1227.
———. “Whose Claim Is This Anyway? Third-Party Litigation Funding.†Minnesota Law Re-view 95 (2011): 1310–11.
Micah B. Rankin. “Access to Justice and the Institutional Limits of Independent Courts.†Windsor Yearbook of Access to Justice 30 (n.d.): 104.
Mitic v OZ Minerals Limited (No 2) (Federal Court of Australia April 21, 2017).
Moh. Fadli, et al. “Environmental Law & Policy [Hukum & Kebijakan Lingkungan].†UB Press, n.d.
Muhar Junef and Moh. Husain. “Establishment of Environmental-Specific Jurisdiction as a State Responsibility for Ecological Justice Efforts [Pembentukan Pengadilan Khusus Lingkungan Sebagai Wujud Tanggung Jawab Negara Pada Upaya Keadilan Ekologis].†Jurnal Penelitian Hukum De Jure 21 (March 2021).
National Commission on Human Rights. “Peace and Justice as Human Rights.†Human Rights Based Development in Indonesia (blog), n.d. https://sdg.komnasham.go.id/en/goal-16/#:~:text=The%20Goal%2016%20covers%20a,right%20to%20access%20to%20justice.
Naveen Kumar Arora. “Environmental Sustainability– Necessary for Survival.†Environmental Sustainability 1 (2018).
Nicholas Dietsch. “Litigation Financing in the U.S., the U.K., and Australia: How the Industry Has Evolved in Three Countries.†Northern Kentucky Law Review 38 (2011): 699.
OECD and Open Society Foundations. “Leveraging the SDGs for Inclusive Growth: Deliver-ing Access to Justice for All,†2016. https://www.oecd.org/gov/delivering-access-to-justice-for-all.pdf.
Rachael Mulheron and Peter Cashman. “Third Party Funding: A Changing Landscape.†Civil Justice Quarterly 3 (2008).
Regulated under the Supreme Court Regulation of the Republic of Indonesia Number 1 of 2014 concerning the Guidelines for Providing Legal Services for Underprivileged Communities in Court (n.d.).
“Resolution 111A: Best Practices for Third-Party Litigation Funding August 2020.†American Bar Association, August 2020.
Rizky Amalia, et al. “The Principle of Good Faith in the Choice of Law of Foreign Direct In-vestment Contracts in Indonesia.†Fiat Justisia 12 (n.d.): 177–78.
Sean Thompson, et al. The Third Party Litigation Funding Law Review. Second Edition. United Kingdom: Law Business Research Ltd, 2018.
Soerjono Soekanto. Pengantar Penelitian Hukum. Jakarta: UI Press, 1986.
Soerjono Soekanto and Sri Mamudji. Penelitian Hukum Normatif. Jakarta: Raja Grafindo Per-sada, 2004.
Sunaryati Hartono. “The Law of Contract in Indonesia.†Malaya Law Review 20 (1978).
Suparto Wijoyo. “Environmental Dispute Resolution [Penyelesaian Sengketa Lingkungan.†Air-langga University Press, n.d.
Susanne Augenhofer, Dame Sara Cockerill, and Henrik Rothe. “Third Party Fund of Litiga-tion.†European Law Institute, n.d. https://www.europeanlawinstitute.eu/projects-publications/current-projects/current-projects/third-party-funding-of-litigation/.
The Standing Committee of Attorneys General. “Litigation Funding in Australia,†May 2006.
The United Nations. “Peace, Justice, and Strong Institutions: Why They Matter,†n.d. Accessed July 11, 2022.
Thurbert Baker. “Paying to Play: Inside the Ethics and Implications of Third-Party Litigation Funding.†Widener Law Journal 23 (2013).
Tom Mullen. “Access to Justice in Administrative Law and Administrative Justice.†In Access to Justice: Beyond the Policies and Politics of Austerity, 69. Hart Publishing, n.d.
UN General Assembly. “Declaration of the High-Level Meeting of the General Assembly on the Rule of Law at the National and International Levels : Resolution / Adopted by the General Assembly.†Refworld (blog), November 30, 2012. UN General Assembly.
Valesca Lima and Miriam Gomez. “Access to Justice: Promoting the Legal System as a Human Right.†In Encyclopaedia of the UN Sustainable Development Goals. Switzerland: Springer Nature, 2020.
Victoria A. Shannon. “Harmonizing Third-Party Litigation Funding Regulation.†Indiana Jour-nal of Global Legal Studies 14 (n.d.): 891.
Victoria Shannon Sahani. “Symposium in Global Labs of International Commercial Dispute Resolution: Global Laboratories of Third-Party Funding Regulation.†AJIL Unbound 115 (2021): 38. https://doi.org/10.1017/aju.2020.79.
Wayne Attrill. “Ethical Issues in Litigation Funding,†February 16, 2009.
———. “Funding Justice: The Role of Litigation Funders in Class Actions.†Precedent 129 (2015): 3.
