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Civil Proceedings: Finance

Question for Ministry of Justice

UIN HL449, tabled on 29 July 2024

To ask His Majesty's Government whether they plan to by reintroduce the Litigation Funding Agreements (Enforceability) Bill, originally introduced in the last Parliament, and if not, what steps they plan to take to mitigate the impact on third party litigation funding of the judgment in R (on the application of PACCAR Inc and others) v Competition Tribunal and others, [2023] UKSC 28.

Answered on

1 August 2024

The Government recognises the critical role third-party litigation funding plays in ensuring access to justice.

Following the PACCAR judgment, concerns have been raised about the need for greater regulation of Litigation Funding Agreements, or greater safeguards for claimants.

The Government is keen to ensure access to justice in large-scale and expensive cases, whilst also setting up adequate safeguards to protect claimants from unfair terms.

The Civil Justice Council is considering these questions and others in its review of third-party litigation funding, and hopes to report in summer 2025. The Government will take a more comprehensive view of any legislation to address issues in the round once that review is concluded.