WITH the election of a new federal government, the debate over third-party litigation financing has heated up. In this atmosphere, it is truly unfortunate that some, including Hugh McLernon of IMF (Australia) in The Australian recently, are brushing off the very real problems posed by the practice.
Instead, they have chosen to mischaracterise the efforts of my organisation, the US Chamber Institute for Legal Reform, to curb financing abuses.
Based on our rough calculations, less than $1 out of every $100 of government spending is backed by even the most basic evidence that the money is being spent wisely. As former officials in the administrations of Barack Obama (Peter Orszag) and George W. Bush (John Bridgeland), we were flabbergasted by how blindly the federal government spends. In other types of American enterprise, spending decisions are usually quite sophisticated, and are rapidly becoming more so: baseball’s transformation...
The federal government spent more than $4 billion to resolve lawsuits last year, a $1.3 billion increase from spending in 2011, an analysis of government records shows.
The 7,000 payments, which are detailed in an obscure database overseen by the Treasury Department known as the Judgment Fund, tell a story of the federal government's inner workings. They highlight often devastating mistakes made by government workers — such as the air-traffic controller who was allegedly making a personal phone...