Analysis of the introduction of a litigation trust system for representative actions in civil securities disputes

Abstract

The introduction of a litigation trust system into special representative actions for civil disputes over securities is an institutional innovation. Litigation trust is a trust system and a form of litigation party in which the principal transfers the substantive rights such as claims and the corresponding litigation rights to the trustee, who conducts litigation as a litigation party for the realization of the substantive interests, and the resulting litigation benefits accrue to the beneficiary. In this article, after distinguishing representative actions and litigation trusts in civil securities disputes, we explain this institutional innovation from the perspectives of necessity and rationality.