Happy Friday! Good news this week for litigation funders in the United Kingdom:
The UK’s Ministry of Justice announced that it will introduce legislation to reverse a UK Supreme Court ruling on litigation finance and clarify that litigation funding agreements are not damages-based agreements.
In the 2023 ruling, which involved a class action against the truck manufacturer PACCAR, the Supreme Court determined that litigation funding arrangements where a funder receives a percentage of the damages awarded in the underlying claim constitute damages-based agreements. This made many litigation funding agreements unenforceable.
The ruling caused trouble for funders in the UK, …