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16 January 2024
Issue: 8055 / Categories: Legal News , Litigation funding
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Hopes raised on PACCAR law

Lawyers have welcomed further signs legislation will be introduced to reverse the PACCAR judgment, which restricts litigation funding

In R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28, the Supreme Court held litigation funding agreements are damages-based agreements and therefore unenforceable.

The Financial Times reported this week Alex Chalk, the Lord Chancellor, told it in a statement: ‘The government will be reversing the damaging effects of PACCAR at the first legislative opportunity.’

Litigation funding enabled the group action of 555 subpostmasters caught up in the Horizon IT scandal against the Post Office, led by Freeths partner James Hartley, which was dramatised by ITV in Mr Bates vs The Post Office.

Martyn Day, co-president of the Collective Redress Lawyers Association (CORLA), said: ‘It has been alarming to see those opposed to litigation funding—unscrupulous big businesses and their cheerleaders—attempting to argue for legislation to restrict funders and law firms from obtaining justice.

‘Group or collective actions are now an intrinsic part of our legal system. If the government were to cave in and impose ill-thought-out restrictions on the ways in which funders and law firms operate, they would be denying access to justice to millions of citizens while giving businesses and corporations, set on using restrictive or unethical practices, a free hand.’

The government has already set out its plans for certain categories of cases—clause 126 of the Digital Markets, Competition and Consumers Bill reverses the effect of the case, but only for opt-out clauses in the Competition Appeal Tribunal (CAT).

During a Lords debate in December on the Bill, Lord Sandhurst proposed a draft amendment to widen cl 126 beyond CAT. Viscount Camrose, for the government, stated the Bill was not the appropriate vehicle but the government was ‘actively considering options for a wider response’.

 

Issue: 8055 / Categories: Legal News , Litigation funding
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MOVERS & SHAKERS

Slater Heelis—Charlotte Beck

Slater Heelis—Charlotte Beck

Partner and Manchester office lead appointed head of family

Civil Justice Council—Nigel Teasdale

Civil Justice Council—Nigel Teasdale

DWF insurance services director appointed to Civil Justice Council

R3—Jodie Wildridge

R3—Jodie Wildridge

Kings Chambers barrister appointed chair of R3 Yorkshire

NEWS

The abolition of assured shorthold tenancies and section 21 evictions marks the beginning of a ‘brave new world’ for England’s rental sector, writes Daniel Bacon of Seddons GSC

Stephen Gold’s latest Civil Way column rounds up a flurry of procedural and regulatory changes reshaping housing, alternative dispute resolution (ADR) and personal injury litigation
Patients are being systematically failed by an NHS complaints regime that is opaque, poorly enforced and often stacked against them, argues Charles Davey of The Barrister Group
A wealthy Russian divorce battle has produced a sharp warning about trying to challenge foreign nuptial agreements in the wrong English court. Writing in NLJ this week, Vanessa Friend and Robert Jackson of Hodge Jones & Allen examine Timokhin v Timokhina, where the High Court enforced Russian judgments arising from a prenuptial agreement despite arguments based on the landmark Radmacher decision
An obscure Victorian tort may be heading for an unexpected revival after a significant Privy Council ruling that could reshape liability for dangerous escapes, according to Richard Buckley, barrister and emeritus professor of law at the University of Reading
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