Dáil Éireann Debate, Tuesday - 23 January 2024
419. Deputy Michael Creed asked the Minister for Justice the steps she will take to address the cost of litigation through the Irish courts; if she accepts that this cost is denying many access to justice; if she will introduce legislation to allow for third party litigation; and if she will make a statement on the matter. [2409/24]
Amharc ar fhreagraI wish to advise the Deputy that the Government is committed to facilitating easier, speedier access to justice for businesses and individuals, part of which involves addressing the issue of costs associated with accessing the legal system.
The Report of the Review of the Administration of Civil Justice (known as the Peter Kelly Report) made over 90 recommendations, which, when implemented, will represent the most significant reform to civil law in the history of the State.
Arising from the Review report, I published the Civil Justice Efficiencies and Reform Measures plan in May 2022. The plan sets out how we will achieve these ambitious reforms, with the goal of facilitating easier, cheaper and quicker access to civil justice.
One area on which the Review Group was not able to reach consensus was on the primary measures necessary to reduce legal costs in Ireland. Two options were put forward: the first a set of non-binding guidelines; the second a table of maximum costs, to be set by an independent committee.
To progress this, one action in the Plan is to undertake research on the two primary options put forward by the Review Group. To this end, my Department commissioned economic consultants to evaluate these two options, as well as identifying other potential options which may serve the same policy objective. This work uses a multi-criteria analysis methodology to assess the impact of the options proposed by the Review Group, as well as other options identified in the research. Underpinning this research has been a stakeholder survey. The work also incorporates existing data on legal costs arising from the National Claims Information Database, as well as from the Office of the Legal Costs Adjudicator
The Department has recently received the final report and expects to publish it shortly. The report’s findings are being examined and will inform the development of policy options to reduce litigation costs, for business, individuals and the State. Development of any measures to reduce costs will also need to be cognisant of their potential impact on competition, transparency, quality of services, maintaining access to justice and improving the efficiency and effectiveness of the legal system.
It is important to note that the Civil Justice Efficiencies and Reform Measures plan identifies a number of measures which have the aim of reducing legal costs, recognising that no one singular action will have the effect of sufficiently addressing the issue on its own.
Regarding third-party funding, as the Deputy may be aware, third-party funding of litigation is currently illegal in this jurisdiction.
Aspects of litigation funding are also considered to be contrary to public policy. In particular, litigation funding may drive a market in legal claims and promote litigation for the benefit of the promoter rather than the litigant. This, in turn, may create a substantial injustice to a defendant in an action.
The Kelly Review Group recommended that a policy review of third party funding of litigation costs, be undertaken. The Review Group considered that the weighing of the policy considerations should however wait until the more detailed examination of the matter is undertaken by the Law Reform Commission. I understand that the Law Reform Commission issued a consultation paper on third party funding last year with a submission deadline of 15 December 2023.
My Department will consider the report of the Law Reform Commission when it is published.
