400-year-old law on third party funding for legal cases ‘needs to be reinterpreted’

A law concerning third party funding of legal cases in Ireland comes from an era when people thought the earth was the centre of the universe, witches were burned at the stake, and the rule of law paled in comparison to the rule of the sword, the High Court has heard.

A British company is funding the damages claim by the runner-up in the bid to win the 1996 competition for a mobile phone licence that was awarded to businessman Denis O’Brien’s Esat Digifone consortium.

It claims Esat won the competition by bribing the then minister for communications Michael Lowry, which is denied.

The case was brought against the minister for enterprise and the State. Mr O’Brien secured an order allowing him to be joined in the proceedings last year while Mr Lowry is a third party to the case.

This type of agreement is prohibited by the law of champerty, which prevents third parties funding a case in the hope of benefiting if the litigant is successful.

Yesterday, Michael Collins, counsel for Persona, said the law has not been updated since the 1600s and needs to be reinterpreted.

The case continues.