Arguing Class Actions: Manchurian Misdirection—False Fears About Chinese Money in Litigation Funding

The newest assaults on litigation funding (the advantages and detriments of which shall be extra comprehensively mentioned in later columns), have taken a decidedly Jap tilt. Certainly, Sen. Thom Tillis, R-North Carolina, and Rep. Darrell Issa, R-California, amongst others, have just lately sought to “tackle” litigation financing, introducing laws designed to curb it via, e.g., substantial taxes on “certified litigation proceeds” meant to make it far more expensive for funders to put money into U.S. circumstances. Up to now, the laws has failed—within the newest spherical, these taxes have been faraway from a closing finances by the Senate parliamentarian. However the criticism has made waves, and, as is unfortunately typical of the instances, carried a not-insignificant tinge of jingoistic paranoia. For instance, on his web site, Issa highlighted “nationwide safety considerations” that allegedly come up as a result of “China-backed funders” have been investing in U.S. circumstances. Issa proclaims that he needs to “advance truthful and equal therapy by the justice system and deter dangerous actors from exploiting our courts.”