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. Clause 126 of the Digital Markets, Competition and Consumers Bill reverses this, 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, responding for the government, stated the Bill was not the appropriate vehicle for this aim but said the government was ‘actively considering options for a wider response’.
Justice minister Lord Bellamy later confirmed this in a response to a written question.
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