The Civil Justice Council, an advisory body to the United Kingdom’s civil justice system, has issued a recommendation urging the legislative reversal of a Supreme Court decision that has created ripples in the litigation finance sector. The disputed ruling, delivered in July 2023 in a class action against truck manufacturer PACCAR, concluded that certain litigation funding agreements are unenforceable when the funder’s recovery constitutes a percentage of damages secured from the funded claim. This decision affected many ongoing and future litigation funding arrangements, eliciting significant concern within the industry.
In its report, the Civil Justice Council suggests that a legislative intervention is necessary to reverse the court’s ruling, both retrospectively and prospectively, to ensure stability in this area of law. The recommendation has been favorably received by litigation funders, who view this as a critical step in maintaining the viability and predictability of their business models.
For further information, the full article on Bloomberg Law offers an in-depth examination of the advisory panel’s recommendations and their potential impact on the litigation finance landscape in the UK.