UK Supreme Court’s ruling impact on litigation funding and justice


The UK Supreme Court has delivered a major blow to the litigation funding industry by ruling that agreements that entitle funders to a share of the damages awarded are unenforceable unless they comply with certain statutory requirements.

The ruling affects a class action lawsuit brought by truck purchasers against truck manufacturers who had breached competition law, as well as other collective proceedings that rely on such funding arrangements. The litigation funding industry has expressed concern and disappointment over the ruling, which they say gives an unfair advantage to well-funded corporations and undermines the purpose of the collective actions regime.

The industry has also called for legislative intervention to clarify and rectify the situation. However, some funders have also tried to reassure the market that the impact of the ruling is limited and that they have adapted their funding contracts to avoid the problem. The ruling has been described as unexpected, significant and potentially catastrophic for the litigation funding sector in the UK.

Luckily our proceedings before German courts will remain intact thanks to our different approach!

* UK Supreme Court deals blow to litigation funding industry
/ Financial Times
* Profession counts cost of crucial UK Supreme Court litigation funding ruling
/ The Global Legal Post

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