News 2024
News
European Justice Forum signs joint business statement on TPLF
EJF joined business associations for the need to regulate private Third-Party Litigation Funding (TPLF) at the EU level due to its potential as a for-profit model to prioritize financial gains over claimants' interests, leading to abusive litigation and unfair settlements.
The document emphasizes the lack of regulation and transparency in TPLF, contrasting it with the stringent oversight and competition in other sectors, and notes the risks of excessive litigation undermining public trust in judicial systems. The European Parliament's 2022 resolution on responsible litigation funding is recommended as a foundation for creating safeguards.
The statement concludes by urging EU-level regulation to maintain a fair, transparent, and balanced legal environment that supports innovation and competitiveness in the EU.
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European Justice Forum Members Meeting November 2024
On 13 November, EJF hosted its second Members Meeting of 2024, this time in Paris, convening participants both in-person at the office of one of EJF’s members, Swiss Re, and virtually. This gathering featured a full agenda addressing pressing legal and regulatory topics and facilitated insightful discussions between the participants.
The event started with a casual luncheon, letting members to connect informally before the official program began. The meeting then opened with an update on EJF activities, including ongoing projects and outreach efforts, alongside a voting session for key organisational initiatives. EJF is developing important new ideas around fostering competition (a) between litigation funders offers, (b) public and other sources of collective action funding as well as (c) more competition between public and private enforcement in order to bring litigation costs down.
Following this, experts shared their latest insights and lessons learned from the transposition of the Representative Actions Directive (RAD), with a special focus on the situation in France, Spain and the results of a recent Class Action Survey 2024.
Later sessions explored the macroeconomic implications of mass actions across Europe, bringing to the forefront the broader effects on regulatory frameworks and market stability. Key voices, including Isabella Wijnberg (Houthoff), Marianne Bardant (LEEM), and Oscar Guinea (ECIPE), presented thought-provoking materials, which sparked debates during the panel discussions.
After a networking break, the conversation shifted to emerging litigation risks, focusing particularly on the regulation of Third-Party Litigation Funding (TPLF) and the challenges posed by AI. While Moya Stevenson (Swiss Re) presented the landscape of potential areas of future mass litigations, Prof. emerit. Chris Hodges (Oxford University) shared his perspectives, offering ways to effectively address these evolving topics.
The event concluded with a forward-looking discussion on EJF’s Strategy 2025 and beyond, highlighting upcoming EU regulatory priorities, national advocacy efforts, and new projects aimed at strengthening evidence-based decision-making in civil justice. Participants from diverse professional backgrounds contributed with their insights to feed into the dialogue.
The meeting ended with a dinner, providing an opportunity for attendees to create connections and reflect on the day’s discussions.
On behalf of the EJF team, we extend our heartfelt thanks to everyone who participated and contributed to the event's success.
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European Justice Forum Members Meeting
On 12 June, EJF hosted its first Members Meeting of 2024, bringing together participants both in-person and virtually. The event, held at the offices of our legal partner Stibbe in Amsterdam, featured a robust agenda focused on legal and regulatory topics. The meeting brought together a vibrant mix of industry professionals for an afternoon filled with debates and networking.
The event began with a luncheon, allowing early arrivals to network and engage informally before the formal sessions began. The agenda included insightful presentations and discussions on key files such as the transposition of the Representative Actions Directive (RAD), the impact of the Product Liability Directive (PLD), insights about Third Party Litigation (TPLF), the effects of mass litigation in Europe, and outcomes of European Elections. Each session was led by top experts, including Moya Stevenson, Prof. Jeroen Kortmann, Dr. David Markworth, Isabella Wijnberg, Fredrik Erixon, Herbert Woopen, Ekkart Kaske and others, who framed and sparked lively discussions. Attendees reacted with their own perspectives and questions, making the sessions dynamic and interactive.
The meeting facilitated the exchange of ideas, allowed the participants to learn about the problematics surrounding access to and delivery of civil justice in a more holistic manner and fostered the creation of new professional relationships.
The event concluded successfully, with many attendees staying for the networking dinner. A big thank you to everyone who joined us and contributed to the insightful debates. With a view to promote balanced, transparent and efficient access to civil justice, EJF will continue offering valuable platforms for members to connect and enhance their professional growth.
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ADR regulatory process update
On 17 October 2023, the Commission adopted a proposal for a directive amending Directive 2013/11/EU on alternative dispute resolution for consumer disputes, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828.
The proposal entails several key changes:
- It extends consumer rights to non-contractual and pre-contractual situations, including digital content and services, and allows for additional dispute resolution categories. It removes geographical establishment requirements for traders, defining cross-border disputes between consumers and traders in different EU states.
- The changes allow bundling similar cases into one procedure with consumer consent, impose a 20-day response deadline for traders to ADR requests, and permit Member States to mandate trader participation in ADR.
- It ensures complaint traceability and support for vulnerable consumers, including non-digital procedures upon request. Parties have the right to human review of automated ADR processes.
- Improved information access and assistance for cross-border disputes are mandated, with ADR contact points designated by Member States.
To enhance trader participation, amendments proposed by the IMCO Committee make participation mandatory for certain air carriers and extend the scope to include pre-contractual obligations.
To boost consumer awareness, amendments aim to improve the impartiality and quality of ADR procedures, requiring human review of automated processes and general understanding of private law in cross-border cases by ADR personnel.
On 13 March, the Plenary endorsed the report as Parliament first reading position with 605 votes in favour, 7 votes against and 13 abstentions. In the Council, it has been referred to the Working Party on Consumer Protection and Information, which debated it for the last time on 22 April.
It is uncertain whether the ADR will be adopted before the European Parliament elections in June. Any institutional change in the midst of this process could influence the regulatory process and final result of the file.
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Trialogue: CS3D passing Council agreement
On 15 March 2024, the Belgian Council Presidency successfully brokered an interinstitutional agreement on the Corporate Sustainability Due Diligence Directive (CS3D), presenting a compromise text that garnered the required Qualified Majority Voting. It underwent significant revisions to address the regulatory burden or alleviate it.