A LANDMARK court judgment has been made that could allow Islanders access to external funding if they cannot afford to pursue a legal claim.

The Royal Court has supported the idea of allowing professional third-party funders to back litigants in legal actions in return for a percentage of any awards made.

In effect, the court accepted that Jersey should follow the UK, but also made clear that what are known as conditional fee agreements remained banned here.

Third-party litigation funders have operated in the UK for some time, but not in the Channel Islands. Until the decision made by the Royal Court ‘in the matter of the Valetta Trust’, the legality and enforceability of funding agreements in the Channel Islands remained untested.

The Royal Court concluded in this case that it was in the public interest that the agreement in question was regarded as valid and enforceable.

The court was persuaded by arguments presented by Advocate Lisa Springate, of legal group Bedell, who acted on behalf of the representors and the new trustee.