The UK’s litigation culture is often seen as more restrained compared to the aggressive, compensation-driven legal system in the US; however, recent trends suggest that certain aspects of the American legal approach, such as litigation funding, are becoming more prevalent in the UK.
The growth of litigation funding in the UK
Litigation funding, whereby third-party financiers cover the costs of legal action in exchange for a share of the settlement, has become increasingly popular in the UK. Originally a concept associated with the US legal system, this practice is now enabling more people in the UK to pursue legal claims without worrying about upfront costs.
As litigation funding becomes more widespread, there is concern that it may lead to a rise in lawsuits, as claimants no longer face the same financial risks. Companies such as //www.novo-modo.co.uk/litigation-funding provide litigation funding solutions.
Comparing the UK and US legal systems
While litigation funding is one area of convergence, there remain key differences between the UK and US legal systems. In the UK, the ‘loser pays’ rule means that the unsuccessful party must cover the winner’s legal costs. This practice discourages frivolous lawsuits. In contrast, each party typically bears its own legal fees in the US.
Another notable difference lies in the role of juries. While civil cases in the US often involve jury trials, most civil cases are heard by a judge alone in the UK. Courts and Tribunals Judiciary has a guide on civil cases.
Is the UK adopting a more Americanised approach?
There are growing signs that the UK’s legal system is becoming more influenced by American practices, particularly with the rise of no-win-no-fee agreements and class action lawsuits. These developments allow individuals to pursue claims without upfront costs.
While the UK has seen changes, the legal system remains more cautious and structured compared to the US. Strict pre-trial protocols and cost rules still act as deterrents to the kind of aggressive litigation culture commonly associated with America.
While certain aspects of the UK’s litigation system are evolving, it remains distinct from the more aggressive, compensation-focused culture of the US.