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

Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

Freeths—Michelle Kirkland Elias

Freeths—Michelle Kirkland Elias

International hospitality and leisure specialist joins corporate team as partner

Flint Bishop—Deborah Niven

Flint Bishop—Deborah Niven

Firm appoints head of intellectual property to drive northern growth

NEWS
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
back-to-top-scroll