Volpes v Permanent Custodians Limited

The matter before the court involved Volpes, the borrower, and Permanent Custodians Limited, the lender and litigation funder. The dispute centred around Volpes' claim that Permanent had abused the court process by acting as a litigation funder for a major competitor. Volpes sought to stay the proceedings on the grounds that Permanent's involvement undermined access to justice and granted them undue control over the proceedings. The court was required to determine whether Permanent's role as a litigation funder constituted an abuse of process and whether it warranted a stay of the proceedings.

The court considered whether Permanent's involvement as a litigation funder constituted an abuse of process. It examined whether Permanent's status as a major competitor and funder of litigation against Volpes' competitor introduced an element of unfairness or undue influence into the proceedings. The court also assessed whether the stay of proceedings was warranted to preserve access to justice and prevent potential undue control by Permanent. In evaluating these issues, the court balanced the principles of access to justice with the rights of parties to litigate and the role of litigation funders in the legal system.

The court concluded that Permanent's role as a litigation funder did not amount to an abuse of process. It found that litigation funders, including those who are major competitors, can legitimately finance litigation without undermining the fairness of the judicial process. The court emphasised the importance of access to justice but held that the presence of a litigation funder did not inherently result in a denial of fair proceedings. Consequently, the court refused to stay the proceedings, finding no grounds to suggest that Permanent's involvement would lead to an unfair outcome or undue control of the litigation. The court's decision upheld the principles of access to justice while recognising the legitimate role of litigation funders in the legal system.