The government consultation, ‘Swifter and simpler competition redress, regulatory appeals and competition enforcement’, launched last week and due to close on 25 September, aims to make opt-out collective actions faster and easier. It builds on responses to a call for evidence last autumn.
The government noted feedback that the current reliance on litigation funders makes the regime ‘vulnerable’, particularly in light of the PACCAR litigation, which created ambiguity about the enforceability of litigation funding agreements. It stated: ‘An increase in options for funding claims could increase competition and therefore drive down the cost of litigation finance, mitigating the risk of a justice gap and increasing the resilience of the regime.’
Other proposals include costs sanctions for unreasonable behaviour and delivery of the funder’s return at an earlier stage in the proceedings.
