IMF (Australia), which is listed on the Australian stock exchange, is backed by Danny Hill, an Irishman now ranked among Australia’s richest businessmen with a fortune of A$310 million (£120 million).

The group is planning to open a subsidiary in the UK within four months.

IMF’s plan has been welcomed by City lawyers, who claim that the cost of lawsuits deters would-be litigants.

However, Stephen Alexander, of Class Law Solicitors, said that he did not expect a flood of litigation as a result of IMF’s arrival.

He said: “It sounds good — there is certainly demand for it if it all goes through. But if you haven’t got a good case, then what are you going to do? We still have the penalty of costs if you lose.”

Over the past two years, IMF has completed six big cases in Australia, including a $50 million suit by retailers against British American Tobacco and Philip Morris, the cigarette companies, over licence fees, and a claim by families of victims of an air crash against Textron Lycoming, an American aircraft engine manufacturer.

IMF, which claims it has won five out of six cases that go before the courts, commands 20 to 30 per cent of any payouts, whether court-ordered or by settlement.

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