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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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MOVERS & SHAKERS

Flint Bishop—Charlotte Harris

Flint Bishop—Charlotte Harris

Sheffield expansion continues with appointment of commercial property partner

Browne Jacobson—Paul Duggan

Browne Jacobson—Paul Duggan

Browne Jacobson strengthens banking and finance practice with latest partner appointment Paul Duggan

Ward Hadaway—Chris Piggott

Ward Hadaway—Chris Piggott

Employment partner joins Ward Hadaway

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Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
Can a meticulously maintained spreadsheet turn a couple’s informal financial arrangements into legally enforceable obligations? 
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