header-logo header-logo

16 January 2024
Issue: 8055 / Categories: Legal News , Litigation funding
printer mail-detail

Hopes raised on PACCAR law

Lawyers have welcomed further signs legislation will be introduced to reverse the PACCAR judgment, which restricts litigation funding

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.

The Financial Times reported this week Alex Chalk, the Lord Chancellor, told it in a statement: ‘The government will be reversing the damaging effects of PACCAR at the first legislative opportunity.’

Litigation funding enabled the group action of 555 subpostmasters caught up in the Horizon IT scandal against the Post Office, led by Freeths partner James Hartley, which was dramatised by ITV in Mr Bates vs The Post Office.

Martyn Day, co-president of the Collective Redress Lawyers Association (CORLA), said: ‘It has been alarming to see those opposed to litigation funding—unscrupulous big businesses and their cheerleaders—attempting to argue for legislation to restrict funders and law firms from obtaining justice.

‘Group or collective actions are now an intrinsic part of our legal system. If the government were to cave in and impose ill-thought-out restrictions on the ways in which funders and law firms operate, they would be denying access to justice to millions of citizens while giving businesses and corporations, set on using restrictive or unethical practices, a free hand.’

The government has already set out its plans for certain categories of cases—clause 126 of the Digital Markets, Competition and Consumers Bill reverses the effect of the case, 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, for the government, stated the Bill was not the appropriate vehicle but the government was ‘actively considering options for a wider response’.

 

Issue: 8055 / Categories: Legal News , Litigation funding
printer mail-details

MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

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

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

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
back-to-top-scroll