Introducing Third-Party Litigation Funding in Ethiopia

Implications for Enhancing Access to Justice

Abstract

In our day-to-day experience, it is common to observe persons encountering challenges to exercise their right to access justice due to costly litigation. The litigation expenses that include the advocate’s fee, court fee, and witnesses’ expense are so onerous to some litigants that they resist to start litigation. To mitigate this problem, countries introduced an innovative litigation-funding scheme known as third-party litigation funding or alternative litigation funding (ALF). It is a business system that an investor, not a party to the litigation, funds the costs of litigation of a litigant upon the agreement to receive some portions from the recovery. ALF eases litigants to fund their litigation and thereby ensure their right to access to justice. In Ethiopia, there is no legally recognized scheme of ALF. The aim of this article is, therefore, to examine whether Ethiopia should introduce ALF. In doing so, the author employs a doctrinal research approach. Particularly, the study analyzed commentaries and scholarly research reports as major source of insights on the subject. After examining the issue, the author concluded that the situation in Ethiopia especially the limitations in the legal aid program imperatively requires the introduction of ALF. Finally, this article indicates some regulatory concerns of ALF including disclosure of the agreement, privilege and confidentiality, and funder litigation control.