header-logo header-logo

Litigation funding legislation to reverse PACCAR

06 March 2024
Issue: 8062 / Categories: Legal News , Litigation funding
printer mail-detail
The government has confirmed it will introduce a law to restore the position that existed before the Supreme Court’s PACCAR ruling last year on litigation funding

Legislation introduced by Alex Chalk, Lord Chancellor, will make it easier for people to secure litigation funding from third parties when pursuing complex claims against wealthy corporates or other large organisations such as the Post Office. Litigation funding was essential to the subpostmasters’ claim, led by former subpostmaster Alan Bates, which challenged the Post Office’s reliance on its flawed Horizon accounting system.

It will effectively reverse R (PACCAR) v Competition Appeal Tribunal [2023] UKSC 28, in which it was held that litigation funding agreements where payment is based on the amount of damages recovered are damages-based agreements, and therefore mainly unenforceable.

Chalk said: ‘It’s crucial victims can access justice—but it can feel like a David and Goliath battle when they’re facing powerful corporations with deep pockets.’

He said the government is considering options for a wider review of the litigation funding sector and how third-party litigation funding is carried out, including whether more regulation and safeguards are required.

Martyn Day, co-president of the Collective Redress Lawyers Association (CORLA), said: ‘This is a very sensible and welcome development from government.

‘It will ensure that groups of claimants seeking redress resulting from wrongdoing by large corporations and other bodies will be able to focus on bringing claims without those corporations tying up court time and money in trying to unpick the funding agreements that make the claims possible.

‘Collective redress is a vital legal mechanism by which ordinary people can seek justice when wrong is done to them by mighty corporations and other bodies. We will work closely with government on any reform that gives clarity, certainty and fairness to claimants and those who support them in bringing their claims.’

Issue: 8062 / Categories: Legal News , Litigation funding
printer mail-details

MOVERS & SHAKERS

Slater Heelis—Chester office

Slater Heelis—Chester office

North West presence strengthened with Chester office launch

Cooke, Young & Keidan—Elizabeth Meade

Cooke, Young & Keidan—Elizabeth Meade

Firm grows commercial disputes expertise with partner promotion

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

NEWS
The Solicitors Regulation Authority (SRA) must overhaul its complaints and risk assessment processes to fix ‘systemic shortcomings’, the Legal Services Consumer Panel has said
The opt-out collective actions regime is facing ‘significant challenges’ but could benefit the UK by £24bn a year if enhanced and expanded, a report by Stephenson Harwood has found
Ministers have rejected the Justice Committee review’s key recommendation for the ailing county court system—an ‘urgent and comprehensive’ review by spring at the latest
Firms preparing to mount Mazur applications alleging the other side has acted in breach of the Legal Services Act 2007 may be left disappointed, the Law Society has said
The first Post Office Capture conviction—the accounting software used before the faulty Horizon system—has been referred for appeal by the Criminal Cases Review Commission (CCRC)
back-to-top-scroll