UK Supreme Court holds many litigation funding agreements to be unenforceable: What next for third-party funding?

On 26 July 2023, the UK Supreme Court delivered its judgment in R (PACCAR) v Competition Appeal Tribunal [2023] UKSC 28, in which it held that litigation funding agreements granting funders a percentage of the claim proceeds are “damages-based agreements” within the meaning of UK legislation. Unless those litigation funding agreements comply with the formal requirements for damages-based agreements – and it is thought the majority of existing agreements on the market do not – those agreements will therefore be unenforceable.

Read more here.