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21 April 2020
Issue: 7883 / Categories: Legal News , Procedure & practice , Costs
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NLJ this week: Is the cap off for litigation funders?

The Arkin cap, which protects third-party litigation funders, will survive the Court of Appeal’s recent refusal to apply it, but in a new light, an advocate has argued.

The Arkin cap, which stems from a 2005 case, limits a third-party funder’s liability to pay costs to the sum the funder paid to its unsuccessful claimant. In February, however, the Court of Appeal unanimously held a third-party funder liable for all the defendant’s costs and refused to apply the Arkin cap, in Money & Anor v Chapelgate [2020] EWCA Civ 246.   

Writing in NLJ this week, commercial solicitor-advocate Thomas Wingfield considers the impact of the Court of Appeal’s decision. Is it the end for the Arkin cap? How will this affect litigation funders?

Wingfield notes that the cap was always controversial, with many people including Lord Justice Jackson, in his review of civil litigation costs, of the opinion that it tilted the playing field too far in favour of funders. He also points out that

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Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

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Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

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NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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