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Pinna, Andrea --- "Financing Civil Litigation: The Case for the Assignment and Securitization of Liability Claims" [2010] ELECD 854; in Tuil, Mark; Visscher, Louis (eds), "New Trends in Financing Civil Litigation in Europe" (Edward Elgar Publishing, 2010)

Book Title: New Trends in Financing Civil Litigation in Europe

Editor(s): Tuil, Mark; Visscher, Louis

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848446854

Section: Chapter 6

Section Title: Financing Civil Litigation: The Case for the Assignment and Securitization of Liability Claims

Author(s): Pinna, Andrea

Number of pages: 22

Extract:

6. Financing civil litigation: the
case for the assignment and
securitization of liability claims
Andrea Pinna

1. INTRODUCTION

1.1 The Fundamental Value of the Right for Compensation and its
Implementation

The right for an injured party of a tortious or contractual wrongdoing to
receive compensation was granted the status of a fundamental value in
Europe. The European Court of Human Rights has indeed decided that
a credit for damages deriving from a wrongdoing, that is a liability credit
or liability claim, is a good for the purpose of application of Protocol 1 of
the European Convention of Human Rights.1 However, in practice, the
implementation of this fundamental right is far from being satisfactory.
Several types of losses do not receive compensation because of the practi-
cal difficulties and the costs necessary to achieve it.
The traditional way for an injured party to seek compensation is to
bring a claim directly and individually in court. In the last decades, legal
systems have developed alternative mechanisms to grant compensation
without exposing the injured party to the burdens of a lawsuit: compensa-
tion schemes have been implemented with regard to particular types of
losses; the insurer is sometimes obliged to offer the injured party a com-
pensation without having been sued or even having been requested to do
so.2 In other legal systems, the lawsuit has become an industry for lawyers
who are entitled to exclusively finance the lawsuit and to be remunerated
only in case of success on the ...