The government’s long-awaited decision to nullify the effects of the 2023 Supreme Court’s decision in PACCAR will bring much needed clarity to litigation funding in England and Wales.
Litigation funding plays an indispensable role in allowing individuals and businesses to pursue claims that would otherwise be financially impossible. Without it, many cases would not be brought, undermining both accountability and access to justice. Whilst the Government has now committed to reversing PACCAR it is not yet clear whether they will agree with the CJC that the legislation should apply retrospectively. Understandably this is a controversial topic and there are mixed views, notably from those with ongoing PACCAR challenges of past funding agreements.
Over the last couple of years, the PACCAR ruling has caused significant uncertainty in the litigation funding market. This adversely impacted access to justice for consumers, business owners and insolvent businesses that rely on third-party funding to bring litigation. It was also undermining the reputation of the law and courts of England and Wales for global dispute resolution.
What is clear, however, is that action is needed. Julian Chamberlayne, Risk and Funding Partner, explains: “I strongly encourage the government to rapidly implement this reversal of PACCAR and what I consider to be the other priority recommendations from the CJC Final Report, the long overdue reform of the DBA regime. Together, these steps would help level the playing field for claimants with strong claims, enabling them to obtain justice against even the most well-resourced defendants”.
To learn more about Stewarts’ campaigning on this issue, follow the links below:
- Reflecting on PACCAR: what did the Litigation Funding Bill need to address?
- Stewarts responds to Civil Justice Council review of litigation funding
- Financial Times reports on Stewarts’ open letter calling for clarity on litigation funding
You can find further information regarding our expertise, experience and team on our Litigation Costs and Funding page.
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