Research On The System Of Third-party Litigation Funding

Third party funding litigation is accepted by the market and the parties with its advantages such as to promote the value rationality of litigation approaching justice and to pay for the litigation cost in advance and transfer the litigation risk,However,due to the public law nature of litigation,the industry can not develop freely only under the supervision of the market.And there is no regulation on its compliance operation at the legislative or judicial level in China,At present,most domestic scholars define and discuss the influence of the existence of Third party funding litigation on the "public" level,and the operation status and existing problems of the industry in China on the basis of the development of Third party funding litigation abroad.However the scope of its application,the growth space,and the necessity and feasibility of establishing a Third party funding litigation system in my country,and the supervision of the financing of litigation behavior are rarely involved.It is short of to the localization of Third party funding litigation.This paper will explore the system of Third party funding litigation.the concept of Third party funding litigation is defined according to its development in China,At the same time,sort out the classification and operation fields of Third party funding litigation.Through the two modes of domestic Third party funding litigation industry,the problems in this industry,such as there is a lack of uniform access standards for the funded industries and the sponsor controls the proceedings,are briefly sorted out.And clarify its basic connotation and significance of existence through the comparison between the Third party funding litigation system and the domestic related systems.Furthermore,the necessity of localization of the third-party funded litigation system is explained from three aspects,which are close to the contradiction between judicial and litigation costs,the requirements of a perfect litigation cost and risk transfer system,and the need for group litigation.From the controllability of litigation risks,the externalities of litigation analyze the feasibility of the rationality of the funding and litigation benefits and the consistency between the expansion of the litigation funding market and the development of financial investment.And then,by introducing the recognition of the legal status of third party funding litigation in the existing foreign laws,and introducing the three types of development status,namely fully open,limited licensing and completely closed,and supervision methods in foreign,So as to draw useful experience for the supervision of the third party funding litigation.Finally,adopt the ways such as set the access requirements for the domestic Third party funding litigation industry,limit and narrow the power of the sponsor to control litigation,put litigation funding in escrow,and standardizing the content of the third-party assistance litigation agreement to deal with the problems existing in the third party funding litigation industry in China,and to explore the localization of the third party funding litigation system.