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PACCAR’s tidal wave effects: Understanding the Legal, Financial and Policy impacts of a highly controversial ruling

By Ana Carolina Salomao |

The following is a contributed piece by Ana Carolina Salomão, Leila Zoe-Mezoughi, Micaela Ossio Maguiña and Sarah Voulaz, of Pogust Goodhead.

This article follows our previous publication dated 10 October 2023 regarding the Supreme Court ruling in PACCAR[1] on third-party litigation funding agreements which, very simply put, decided that litigation funding agreements (“LFAs”), permitting funders to recover a percentage of damages, amounted to (“DBAs”) damages-based agreements by virtue of s.58AA of the Courts and Legal Services Act 1990 (the “1990 Act”). As such, all LFAs (including those retrospectively drafted) were consequently required to comply with the Damages-Based Agreements Regulations 2013 (the “2013 Regulations”) or be deemed, unenforceable.

In this article, we explore the three main industry-wide changes that have arisen as a direct result of the PACCAR ruling:

  1. The diverse portfolio of LFA reformulation strategies deployed by litigation finance stakeholders.
  2.  The government response, both in terms of official statements and policy changes, which have ultimately led to the draft bill of 19 March 2024.
  3.  The wave of litigations subsequent to the PACCAR ruling, giving insight into the practical market consequences of the ruling.

Ultimately, the PACCAR impact and its proposed reversal has not undermined the UK litigation finance market, in fact the contrary; it has promoted visibility and adaptation of a litigation finance market that continues to gain significant traction in the UK. As a result, despite the concern shown by most UK industry stakeholders about the negative impacts of the PACCAR ruling, this article argues that proper regulation could indeed be highly advantageous, should it incentivise responsible investment, whilst protecting proper access to justice. However, the question does remain, will we ever get there?

The LFA reformulation storm.

As expected, the first reaction to PACCAR came from the litigation finance market. As anticipated, LFAs (those with an investor return formula based on a percentage of the damages recovered) are being amended by parties to avoid their potential unenforceability.

The majority of amendments being implemented are aimed to design valuation methodologies for the amount recovered, which are not directly related to the damages recovered, but are rather a function of some other metric or waterfall, therefore involving a process of alteration of pricing. The intention is for the agreements to fall out of the scope of the definition of ‘claims management services’ provided by section 58AA of the Courts and Legal Services Act 1990 (CLSA), which stipulates two main criteria: (i) the funder is paid if the litigation succeeds, and (ii) the amount paid back to the funder is a function of the amounts recovered by the claimant in damages. As such, novel pricing structures such as charging the amount granted in third-party funding with accrued interest; a multiple of the funded amount; or even a fixed pre-agreed amount recovered in the form of a success fee, would not meet both criteria and would hence fall outside of the legal definition of claims management services. These options would avoid the risk of an LFA being bound to the same requirements of a DBA and potentially rendered unenforceable.[2]

Another option to render LFAs enforceable following PACCAR is of course to make these compliant to the definition of DBA provided in s.58AA(2) of the 1990 Act. As such, LFAs would be subjected to stringent statutory conditions as per the Damages-Based Agreements Regulations 2013 (the “2013 Regulations”). This option has however not been the most attractive for funders, firstly due to funders not necessarily conducting claims management services and, secondly, because LFAs would automatically become subject to highly stringent rules to structure the agreements and pursue recovery. For example, such LFAs would need to comply with the cap requirements outlined in the 2013 Regulations such as: 25% of damages (excluding damages for future care and loss) in personal injury cases, 35% on employment tribunal cases and 50% in all other cases.

Ultimately, it can be argued that the choice for restructuring a single LFA or a portfolio of LFAs will vary on a case-by-case basis. Those parties who find themselves at more advanced stages of proceedings will be disadvantaged due to the significant challenges they are likely to face in restructuring such LFAs. From the perspective of the legal sector, on the one hand, we can see an increase in law firms’ portfolio lending, whereby the return to funders is not directly related to damages recovered by the plaintiff. On the other hand, there are certain actors who are remaining only superficially affected by the ruling, such as all funding facilities supporting law firms which raise debt capital collateralised by contingent legal fees.

The introduction of the proposed bill by the government (which is discussed below), is a reflection of the enormous burden the Supreme Court ruling has placed on critical litigation funder stakeholders who are likely to have invested disproportionate sums to amend their LFAs and restructure their litigation portfolios. However, the bill has also given momentum to the sector and is helping to highlight the importance of diversification in litigation funding to protect the interests of low-income claimants. The medium-term net balance of the regulation might be rendered positive if redirected at perfecting and not prohibiting third-party funding agreements to protect access to justice.

The UK Government Intervention.

The UK government has raised concerns regarding the legal and financial impacts of PACCAR relatively swiftlyfollowingthe 26 July 2023 judgement. Their first response to PACCAR came from the Department of Business and Trade (DBT) at the end of August 2023. The DBT stated that, being aware of the Supreme Court decision in PACCAR, it would be “looking at all available options to bring clarity to all interested parties.[3]

In the context of opt-out collective proceedings before CAT, the government proposed in November 2023 amendments to the Digital Markets, Competition and Consumers Bill (DMCC) through the introduction of clause 126, which sought to implement changes to the Competition Act 1998 (CA) to provide that an LFA would not count as a DBA in the context of opt-out collective proceedings in the CAT. This proposal came from the understanding that after PACCAR opt-out collective proceedings would face even greater challenges considering that under c.47C(8) of the CA 1998 DBAs are unenforceable when relating to opt-out proceedings. Proposals for additional amendments to the DMCC soon followed, many of which await final reading and approval by the House of Lords. However, in December 2023 Lord Sandhurst (Guy Mansfield KC) noted that while amendments to the DMCC would mitigate PACCAR’s impact on LFAs for opt-out collective proceedings in the CAT, “the key issue is that the Supreme Court’s PACCAR ruling affects LFAs in all courts, not just in the CAT, and not just, as this clause 126 is designed to address, in so-called opt-out cases.”

As a response to this, the Ministry of Justice announced last March that the government intended to extend the approach taken for opt-out collective proceedings in the CAT to all forms of legal proceedings in England and Wales by removing LFAs from the DBAs category entirely. The statement promised to enact new legislation which would “help people pursuing claims against big businesses secure funding to take their case to court”and“allow third parties to fund legal cases on behalf of the public in order to access justice and hold corporates to account”.[4]

Following this announcement, the Litigation Funding Agreements (Enforceability) Bill was published and introduced to the House of Lords. As promised by the government’s previous statements, the primary purpose of the Bill is to prevent the unenforceability of legitimate LFAs fitting into the amended DBA definition of PACCAR. Indeed, the bill aims to restore the status quo by preventing litigation funding agreements from being caught by s.58AA of the 1990 Act.[5]

The litigation wave.

As parliamentary discussions continue, all eyes are now in the Court system and the pending decisions in litigations arising from PACCAR. Despite the government’s strong stance on this matter, the bill is still in early stages. The second reading took place in April 2024, where issues such as the retrospective nature of the Bill, the Civil Justice Council’s (CJC) forthcoming review of litigation funding, and the need to improve regulations on DBAs, were discussed. Nevertheless, despite the arguable urgency of addressing this issue for funders and the litigation funding market, there is no indication that the bill will be expedited; hence the next step for the bill passage is the Committee stage. The myriad of cases arising from PACCAR may need to stay on standstill for a while, as Courts are likely to await the outcome of the proposed bill before deciding on individual matters.

The UK has a longstanding history of tension between the judiciary power and the two other spheres of the government, the Executive and Parliament. Most of these instances have sparked public debate and have profoundly changed the conditions affecting the market and its players. For example, in the case of R (on the application of Miller and another) (Respondents) v Secretary of State for Exiting the European Union (Appellant) [2017] UKSC 5, Gina Miller launched legal proceedings against the Johnson government to challenge the government’s authority to invoke Article 50 of the Treaty of European Union, which would start the process for the UK to leave the EU, without the Parliament’s authorisation. The High Court decided that, given the loss of individual rights that would result from this process, Parliament and not the Executive should decide whether to trigger Article 50, and the Supreme Court confirmed that Parliament’s consent was needed.

Another example is the more recent case of AAA (Syria) & Ors, R (on the application of) v Secretary of State for the Home Department [2023] UKSC 42 regarding the Rwanda deportation plan. In this case the Supreme Court ruled unanimously that the government’s policy of deporting asylum seekers to Rwanda was unlawful – in agreement with the Court of Appeal’s decision which found that the policy would pose a significant risk of refoulement.

Nevertheless, rushing the finalisation of a bill reversing PACCAR would probably be a counterproductive move. The recent developments suggest that policy makers should focus on deploying a regulatory impact assessment on any regulations aimed at improving access to finance in litigation. Regulators and legislators should ensure that, before designing new regulatory frameworks for litigation finance,  actors from the litigation finance industry are consulted, to ensure that such regulations are adequate and align with the practical realities of the market.

As the detrimental impacts of PACCAR become ever more visible, public authorities should prioritise decisions that favour instilling clarity in the market, and most importantly, ensuring proper access to justice remains upheld in order to “strike the right balance between access to justice and fairness for claimants”.  

A deeper look into the post-PACCAR’s litigations and their domino effects

Even though the English court system is yet to rule on any post-PACCAR case, it is important to understand the immediate effects of the decision by looking at a few landmark cases. We provide in this section of the article an overview of the impacts of the rulingin perhaps the three most important ongoing post-PACCAR proceedings: Therium Litigation Funding A IC v. Bugsby Property LLC (the “Therium litigation”), Alex Neill Class Representative Ltd v Sony Interactive Entertainment Europe Ltd [2023] CAT 73 (the “Sony litigation”) and the case of Alan Bates and Others v Post Office Limited [2019] EWHC 3408 (QB), which led to what has been known as the “Post Office scandal” (also referred to as the “Horizon scandal”).

Therium litigation

The Therium litigation is one of the first cases in which an English court considered questions as to whether an LFA amounted to a DBA following the Supreme Court decision in PACCAR. The case concerned the filing of a freezing injunction application by Therium Litigation Funding I AC (“Therium”) who had entered into an LFA with Bugsby Property LLC (“Bugsby”) in relation to a claim against Legal & General Group (“L&G”). The LFA stipulated between Therium and Bugsby entitled Therium to (i) return of the funding it had provided; (ii) three-times multiple of the amount funded; and (iii) 5% of any damages recovered over £37 million, and compelled Bugsby’s solicitors to hold the claim proceeds on trust until distributions had been made in accordance with a waterfall arrangement set out in a separate priorities’ agreement.

Following a settlement reached between Bugsby and L&G, Bugby’s solicitors transferred a proportion of settlement monies to Bugsby’s subsidiary, and notified Therium of the intention to transfer the remaining amount to Bugsby on the understanding that the LFA signed between Therium and Bugsby was unenforceable as it amounted to a DBA following the PACCAR ruling. Therium applied for an interim freezing injunction against Bugsby under s.44 of the Arbitration Act 1996 and argued that, as the payment scheme stipulated by the LFA contained both a multiple-on-investment and a proportion of damage clauses, and the minimum recovery amount to trigger the damage-based recovery had not been reached, no damage-based payment was foreseen.

This meant that the DBA clause within the LFA could be struck off without changing the nature of the original LFA, so that it constituted an “agreement within an agreement”. As legal precedents such as the Court of Appeal ruling in Zuberi v Lexlaw Ltd [2021] EWCA Civ 16 allowed for parts of an agreement to be severed so as to render the remainder of the agreement enforceable, the High Court granted the freezing injunction, affirming that a serious question was raised by Therium regarding whether certain parts of the agreement could be severed to keep the rest of the LFA enforceable.

By declaring that there was a serious question to be tried as to whether the non-damage clauses, such as the multiple-based payment clauses, are lawful or not, the High Court opened the possibility of enforceability of existing LFAs through severability of damage-based clauses in instances where PACCAR may also apply. The Therium litigation presents an example of another possible structuring strategy to shape LFAs to prevent them from becoming unenforceable under PACCAR. Nonetheless, as the freezing injunction will now most likely lead to an arbitration, a final Court ruling on the validity of these non-damage-based schemes appears to be unlikely.

Sony litigation

The Sony group litigation is another example of one of the first instances where issues of compliance of a revised LFA have been addressed in the aftermath of PACCAR, this time in the context of CAT proceedings. In this competition case, Alex Neill Class Representative Limited, the Proposed Class Representative (PCR), commenced collective proceedings under section 47B of the CA 1998 against Sony Interactive Entertainment Network Europe Limited and Sony Interactive Entertainment UK Limited (“Sony”). The claimant alleged that Sony abused its dominant market position in compelling publishers and developers to sell their gaming software through the PlayStation store and charging a 30% commission on these sales.

The original LFA entered between Alex Neill and the funder as part of the Sony litigation amounted to a DBA and would have therefore been unenforceable pursuant to PACCAR. On this basis, the PCR and funder negotiated an amended LFA designed to prevent PACCAR enforceability issues. The LFA in place was amended to include references for funders to obtain a multiple of their total funding obligation or a percentage of the total damages and costs recovered, only to the extent enforceable and permitted by applicable law. The LFA was also amended to include a severance clause confirming that damages-based fee provisions could be severed to render the LFA enforceable.

The CAT ultimately agreed with the position of the PCR and confirmed that the revised drafting “expressly recognise[d] that the use of a percentage to calculate the Funder’s Fee will not be employed unless it is made legally enforceable by a change in the law.” In relation to the severance clause, the CAT also expressly provided that such clause enabled the agreement to avoid falling within the statutory definition of a DBA and referred to the test for effective severance clauses.

The CAT’s approach in recognising the PACCAR ruling and yet allowing for new means to render revised LFAs enforceable in light of this decision provides a further example of a Court’s interpretation of the decision, allowing another route for funders to prevent the unenforceability of agreements. Allowing these clauses to exempt litigation funders from PACCAR will in fact allow for such clauses to become market standard for LFAs, and in this case particularly for those LFAs backing opt-out collective proceedings in the CAT.

Post Office scandal  

Although the Post Office scandal occurred in 2019, this case was only recently brought back to light following the successful tv series ‘Mr Bates vs The Post Office’ which recounts the story of the miscarriage of justice suffered by hundreds of sub-postmasters and sub-postmistresses (SPM’s) in the past two decades. In short, the Post Office scandal concerned hundreds of SPM’s being unjustly taken to court for criminal offences such as fraud and false accounting, whilst in reality the Horizon computer system used by Post Office Ltd (POL) was found to contain errors that caused  inaccuracies in the system.

Mr. Bates, leading claimant in the case, brought the case on behalf of all the SMP’s which had been unfairly treated by POL. The issuing of the claim was only made possible thanks to a funding arrangement between litigation funders and the SPM’s, used as a basis for investors to pay up front legal costs. As outlined in a publication by Mr Bates in January 2024, such financing, combined with the strength and defiance of Mr. Bates’ colleagues, allowed the case to be brought forward, a battle which in today’s circumstances the postmaster believes would have certainly been lost.[6]

The sheer scale of the Post Office scandal, and the fact that traditional pricing vehicles for legal services would have negated the claimants access to justice, placed the case near the top of the government’s agenda and called again into question the effect of PACCAR on access to justice. Justice Secertary Alex Chalk MP relied on the example of Mr Bates and the Post Office scandal to affirm that that “for many claimants, litigation funding agreements are not just an important pathway to justice – they are the only route to redress.”[7]In light of this recent statement more radical changes to legislation on litigation funding and the enforceability of LFAs appear to be on the horizon.


Assessing the long-term impact of PACCAR will ultimately need to wait until the dust in the litigation finance market settles. Nonetheless, the immediate impacts of the decision have brought four key considerations to light.

First, the relevance of the litigation funding industry in the UK is substantial and any attempt to regulate it impacts not only those who capture value from the market but also the wider society. Regulation of litigation funding could inadvertently affect wider policy questions such as equal access to justice, consumer rights, protection of the environment and human rights.

Second, there is an undeniable intention of the regulators to oversee the litigation finance market, which could reflect in stability and predictability that would be much welcomed by institutional investors and other stakeholders. However, this conclusion assumes that regulatory efforts will be preceded by robust impact assessment and enforced within clear guardrails, always prioritising stability and ensuring proper access to justice.

Third, PACCAR serves to bring awareness that attempts to regulate a market in piecemeal can lead to detrimental outcomes and high adapting costs, far offsetting any positive systemic effects brought by the new framework. Any attempts to regulate a market so complex and relevant for the social welfare should be well-thought-out with the participation of key stakeholders.

Fourth, despite the recent headwinds, the market and government reaction further prove that the litigation finance market continues its consolidation as an effective vehicle to drive value for claimants and investors. The fundamentals behind the market’s growth are still solid and the asset class is consolidating as a strategy to achieve portfolios’ uncorrelation with normal market cycles. As private credit and equity funds as well as venture capitalists, hedge funds and other institutions compete to increase their footprint in this burgeoning market, it is safe to expect a steady increase of market size and investors’ appetite for the thesis.

In conclusion, despite a first brush view of the PACCAR decision, the reactions to this decision and the subsequent developments have evidenced how litigation finance continues to be a promising investment strategy and an effective tool to drive social good and access to justice.

[1] Ana Carolina Salomao, Micaela Ossio and Sarah Voulaz, Is the Supreme Court ruling in PACCAR really clashing with the Litigation Finance industry? An overview of the PACCAR decision and its potential effects, Litigation Finance Journal, 10 October 2023.

[2] Daniel Williams, Class Action Funding: PACCAR and now Therium – what does it mean for class action litigation?, Dwf, October 25, 2023.

[3] Department for Business and Trade statement on recent Supreme Court decision on litigation funding: A statement from the department in response to the Supreme Court's Judgement in the case of Paccar Inc. and others vs. Competition Tribunal and others. Available at: <>.

[4] Press release, ‘New law to make justice more accessible for innocent people wronged by powerful companies’ (GOV.UK, 4 March 2024) Available at <>.

[5] Litigation Funding Agreements (Enforceability) Bill (Government Bill originated in the House of Lords, Session 2023-24) Available at <>.

[6] Alan Bates, ‘Alan Bates: Why I wouldn’t beat the Post Office today’ (Financial Times, 12 January 2024) <>.

[7] Alex Chalk, ‘Cases like Mr Bates vs the Post Office must be funded’ (Financial Times, 3 March 2024) <>.

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Fernando Gragera joins Aon to lead the litigation and contingency insurance practice in Iberia

By Harry Moran |

Aon strengthens its M&A and Transaction Solutions team and pioneers a local team specialising in the management of these risks

Aon plc (NYSE: AON), a leading global professional services firm, has appointed Fernando Gragera as Director of Litigation and Contingent Risks for Spain and Portugal. Fernando will join the Iberia M&A and Transaction Solutions (AMATS) team led by Lucas López Vázquez, and globally in Aon's international Litigation Risk Group. His role will be to develop the litigation insurance practice and assist Aon's clients in transferring risks arising from litigation and contingent situations.

Fernando Gragera, a Spanish lawyer and solicitor of England and Wales with more than 13 years of professional experience, comes from PLA Litigation Funding, a litigation funder specialising in the Iberian market. Previously, he worked as a lawyer in the litigation and arbitration department of Cuatrecasas and as in-house counsel at Meliá Hotels International, where he was responsible for the group's litigation and arbitration.

This appointment responds to the growing interest from investment funds, corporations and law firms in covering contingent and litigation-related risks and makes Aon the first professional services firm with a local team specialising in contingent and litigation solutions in Iberia.

Miguel Blesa, head of Aon Transaction Solutions in Iberia: "Fernando's appointment is a major milestone for the industry and embodies a commitment we have been working on for years. In this way, we reinforce our commitment to continue to support our clients and help them make the best decisions to protect and grow their business”.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries and sovereignties with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.

Follow Aon on X and LinkedIn. To learn more visit our NOA content platform. 

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Altroconsumo Secures Impressive 50 million Euro Settlement for 60,000 Participants to Dieselgate Class Action in Italy

By Harry Moran |

Altroconsumo and VW Group have reached a ground-breaking agreement, providing over 50 million euro relief to over 60,000 Italian consumers affected by the emissions fraud scandal. Celebrating this major win for Italian consumers, Euroconsumers calls on Volkswagen to now also compensate Dieselgate victims in the other Euroconsumers countries. 

The settlement reached by Altroconsumo, arising from a Euroconsumers coordinated class action which commenced in 2015 ensures that Volkswagen will allocate over 50 million euros in compensation. Eligible participants stand to receive payments of up to 1100 euros per individual owner.

This brings an end to an eight year long legal battle that Altroconsumo together with Euroconsumers has been fiercefully fighting for Italian consumers and marks a significant milestone in seeking justice for those impacted by the ‘Dieselgate’ scandal.

We extend our massive congratulations to Altroconsumo for reaching this major settlement in favor of the Italian Dieselgate victims. Finally, they will receive the justice and compensation they deserve. This milestone underscores the importance of upholding consumer rights and the accountability of big market players when these rights are ignored, something Euroconsumers and all its national organisations will continue to do together with even more intensity under the new Representative Actions Directive” – Marco Scialdone, Head Litigation and Academic Outreach Euroconsumers

Together with Altroconsumo in Italy, Euroconsumers also initiated Dieselgate class actions against the Volkswagen-group in Belgium, Spain and Portugal. While the circumstances are shared, the outcomes have been far from consistent.

Euroconsumers was the first European consumer cluster to launch collective actions against Volkswagen to secure redress and compensation for all affected by the emissions scandal in its member countries. After 8 years of relentless pursuit, we urge the VW group to finally come through for all of them and give all of them the compensation they rightfully deserve. All Dieselgate victims are equal and should be treated with equal respect.” – Els Bruggeman, Head Policy and Enforcement Euroconsumers

Consumer protection is nothing without enforcement and so Euroconsumers and its organisations will continue to lead important class actions which benefit consumers all across the single market. 

Read the full Altroconsumo press release here.

About Euroconsumers 

Gathering five national consumer organisations and giving voice to a total of more than 1,5 million people in Italy, Belgium, Spain, Portugal and Brazil, Euroconsumers is the world’s leading consumer cluster in innovative information, personalised services and the defence of consumer rights. Our European member organisations are part of the umbrella network of BEUC, the European Consumer Organisation. Together we advocate for EU policies that benefit consumers in their daily lives.

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Member Spotlight: Felipe Hotta 

By John Freund |

Felipe Hotta, Partner at Pogust Goodhead, is a 29-year-old Brazilian lawyer who graduated from the University of São Paulo (USP). Hotta graduated a master's degree in environmental law from Queen Mary University of London and trained at the Negotiation Program at Harvard Law School. 

Specialized in indigenous law, environmental law, and human rights, Hotta dedicates his career to advocating on behalf of vulnerable communities and of those without full access to justice in Brazil, particularly in cases against large international corporations.  

Pogust Goodhead is a global law firm headquartered in London, England, dedicated to fighting for justice on behalf of those affected by potentially irresponsible actions from large corporations. Pogust Goodhead´s mission is to level the playing field between individuals, businesses and large corporations. 

In 2023, Pogust Goodhead and Gramercy signed a £450 million investment partnership, the largest litigation funding deal in legal history. 

Company Website: 

Year Founded: 2018 

Headquarters: Rio de Janeiro, London, Philadelphia, Amsterdam, Miami, Edinburgh, San Diego, New Jersey and Sydney. 

Area of Focus:  Environmental law, human rights, climate litigation, consumer law, indigenous law, collective disputes 

Member Quote: "In a context where access to justice is often a privilege of the powerful, litigation funding emerges as hope for those who have been victims of human rights or environmental rights violations in Brazil, particularly in the fight against large corporations." 

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Rachel Rothwell: CJC Review’s Recommendations Expected to be ‘Considered, Comprehensive and Workable’

By Harry Moran |

An opinion piece in the latest edition of The Law Society Gazette magazine sees Rachel Rothwell explore the question of whether litigation funders should be worried about the upcoming Civil Justice Council (CJC) review of third-party funding in the UK. 

As Rothwell points out in her introduction, the CJC review is unlikely to see the prolonged timelines of similar reviews we have seen abroad, as the CJC has been tasked to deliver its final report by the summer of 2025. She also suggests that the CJC “will not be starting from scratch”, given that one of the working group’s members, Mrs Justice Cockerill, has a pre-existing involvement in an ongoing research project looking at this topic for the European Law Institute (ELI).

Regarding the issue of whether the CJC review will recommend statutory regulation of the litigation funding industry, Rothwell suggests that whilst there is a member of the Financial Conduct Authority on the review’s working group, “the FCA has so far shown no appetite for that onerous task.” Furthermore, Rothwell reveals that the current draft version of the report from ELI “concludes that statutory regulation would not be the right approach.”

Rothwell also explores other issues that the CJC review may consider, from a greater level of self-regulation through industry associations or the potential of imposing a cap on funder’s returns. However, Rothwell concludes that as we currently look at the review “it is particularly encouraging that it is already drawing together a broader consultation group” and that we can expect its recommendations “to be considered, comprehensive and workable.”

Spanish Arbitration Event Highlights Value of Third-Party Funding

By Harry Moran |

An article in Iberian Lawyer provides coverage of the OPEN FEST of Arbitration event in Madrid, which included a panel discussion on investment arbitration and the use of third-party funding in these disputes. The panel was moderated by Claudia Frutos-Peterson from Curtis, Mallet-Prevost, Colt & Mosle, and featured insights from Cristina Soler, CEO of Ramco; José Julio Figueroa, General Counsel of Acciona; Carlos Gutiérrez García, Litigation Director at Siemens Gamesa; and Ignacio Del Cuvillo, Director of Legal Corporate Services & Finances at Repsol.

The panel discussion highlighted the gradually increased use of third-party funding in this area, citing the Global Arbitration Review (GAR) 100 annual survey which found the number of funded arbitrations had risen from 198 in 2022, to 208 in 2023. The lengthy timelines and high costs involved in these disputes was raised as a key incentive for the use of third-party funding, with Figueroa explaining that “conflicts between foreign investors and host states involve significant strategic, geopolitical, and economic interests, with prolonged and uncertain execution periods.”

Speaking from the funder’s perspective, Ramco’s Cristina Soler discussed the value that a funder can bring beyond its financial resources, such as the firm’s experience in navigating these disputes and building a viable strategy for both the arbitration and any award enforcement or collection issues that may arise.

New Study Reveals How GCs and CFOs Across Industries Manage Legal Risk and Value in an Uncertain Climate

By Harry Moran |

Burford Capital, the leading global finance and asset management firm focused on law, today releases a new study that examines how senior legal and finance department leaders across industries approach litigation spend, legal cost and risk management and optimizing legal department value.

Much has changed in the 15 years since Burford's inception in the wake of the global financial crisis. Economic, political and societal changes have impacted different industries and their legal functions in different ways. This study reveals how leaders from both legal and finance functions in various industries are responding to both external and internal factors—adapting their legal strategies to navigate the evolving landscape effectively—and where they plan to allocate resources moving forward.

The research is gathered from online interviews with 400 senior lawyers and finance professionals across ten industry sectors, shedding light on their decision-making processes regarding commercial disputes as well as cost and risk management within their legal departments. Industry sectors addressed are construction and real estate; consumer goods and services; energy; food; healthcare; manufacturing; mining; pharma and life sciences; retail; and transportation and supply chain.

Key findings from the study include:

  • Senior legal and finance leaders in construction and mining expect the biggest increases in litigation spend in the next five years, with pharma and food close behind.
  • 3 of 4 GCs and CFOs in construction and real estate say a top priority is to increase certainty and predictability of legal costs—25% higher than the average across all industries.
  • Pharma and life sciences GCs and CFOs are four times more likely than the average across all industries to say they could reallocate $50 million or more elsewhere in the business by financing litigation and arbitration.
  • Almost two thirds (65%) of senior finance and legal leaders at mining companies say that in the next 15 years they are likely to use monetization, a legal finance solution that provides businesses immediate capital by advancing some of the expected entitlement of a pending claim, judgment or award.
  • Half of GCs and CFOs at food companies expect their organization's litigation and arbitration spend to increase by more than 25% over the next five years; they are also 54% more likely to have used legal finance than the average across all industries.
  • A third of senior finance and legal leaders at energy companies say they already have a robust affirmative recovery program in place, nearly twice as many as the average across all industries. 
  • Healthcare, retail and consumer GCs and CFOs are more likely to say legal finance can play a significant role in reducing overall litigation and legal costs, perhaps reflecting these sectors' typically thin margins and their desire for innovative cost-saving measures.
  • Finance and legal leaders at retail companies are the most likely to say they intend to invest heavily in legal technology and AI over the next year.
  • Industries in which leaders anticipate the largest increases in future litigation spend do not currently have the largest budgets, suggesting a significant shift in litigation priorities among some industries.

Christopher Bogart, CEO of Burford Capital, said: "Burford's latest research affirms that GCs and CFOs across industries are thinking about new ways to create value for the business, which is at the heart of our work to help clients reframe the legal department from cost center to capital source.

"Burford was founded in the wake of the 2009 global financial crisis, and we recognize that our capital and expertise are especially valuable in challenging times. A major shift since our founding is the continued expansion of our client base from law firms to companies, including very large ones, and financing arrangements with companies now account for the majority of our business. We help all our clients navigate risk and exploring innovative capital solutions, but the growth of our business with corporate clients—including a recent $325 million deal with a single Fortune 500—is exemplary of how much our capital and expertise can help businesses both survive and thrive in today's uncertain landscape."

The latest research is based on an online survey of senior financial officers and in-house lawyers of companies across ten different industries and with annual revenues of $50 million or more in the US, UK, Australia, Singapore, Germany, France, Spain, Switzerland, Sweden, The Netherlands and the UAE. All respondents are in roles that include knowledge of their companies' litigation expenditures and decision-making.The Industry perspectives on litigation and arbitration survey can be downloaded on Burford's website. The research was conducted by GLG from December 2023–January 2024.

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Audley Capital Appoints Rick Gregory to Executive Board

By Harry Moran |

In a post on LinkedIn, Audley Capital announced the appointment of Rick Gregory to its executive board. Gregory serves as a Director for Audley and is a legal funding specialist, “with over 28 years of experience in legal funding, law firms, insurance, and volume litigation.”

The announcement highlighted Gregory’s vast experience across the legal sector, saying that “his profound understanding of the market, regulatory landscape, and commercial requirements for all stakeholders has paved the way for the implementation of litigation funding across some of the largest volume schemes in the UK.”In addition to his work on the executive board Audley, Gregory is also the co-founder of Legal Intelligence, a legal tech company that provides a range of AI solutions to “drive efficiency, innovation, and scalability, empowering professionals to gain a competitive edge and achieve sustainable growth and client delight.”

CAT Approves £25 Million Settlement in Boundary Fares Class Action

By Harry Moran |

As LFJ reported last month, the parties in the Stagecoach South Western Trains class action had reached a settlement agreement, with SSWT agreeing to pay up to £25 million to eligible class members who were overcharged on their rail fares by the train operator.

An article in City A.M. provides an update on the case, as the Competition Appeal Tribunal (CAT) has approved the proposed settlement. Now that it has been approved by the tribunal, class members will be able to register and submit a claim for payment in order to receive compensation from the settlement. The claim period will last for six months, from 10 July 2024 to 10 January 2025.

Within four months of the claim period ending, the class representative will then provide SSWT with the total amount to be claimed, up to the total of £25 million agreed in the settlement. SSWT will then have a period of 21 days following receipt of this information to pay the class representative the ‘notified damages sum’.

The class action was filed by Charles Lyndon, with Woodsford Group providing the funding for the litigation. 

Steven Friel, Woodsford’s CEO said: “This settlement approval confirms Woodsford as the most active and the most successful litigation funder in the CAT collective proceedings regime. Our actions have resulted in the first two, and as yet only, court-approved settlements in the regime.”The full collective settlement approval order from the CAT can be read here.

Burford Capital Reports First Quarter 2024 Results

By Harry Moran |

Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today announces its first quarter 2024 results.

In addition, Burford has made available an accompanying first quarter 2024 results presentation on its website at

Christopher Bogart, Chief Executive Officer of Burford Capital, commented:

"Our first quarter showed our highest ever reported level of first quarter cash receipts, above-average realized gains, continued case conclusions with loss levels below historical experience and moderate new business activity broadly consistent with a typical first quarter. Total revenues reflected the variable timing of recognition we expect in our business; the underlying portfolio continued to show forward momentum with no material negative developments, while lower operating expenses reflected the absence of elevated variable costs."The full summary of the quarterly results can be read here.

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Alan Bates: Claims that Funders Exploited Postmasters are “Absolute Nonsense”

By Harry Moran |

The introduction and subsequent debate of the government’s Litigation Funding Agreements (Enforceability) Bill has spurred a renewed debate over the role of third-party funding in the UK legal system, with both sides of this public relations battle pointing to the Post Office Horizon case as a key example that supports their arguments.

In an opinion piece for The Guardian, Alan Bates argues that the sub-postmasters successful fight for justice “is being twisted by those who don’t want to see its like again”. In the article, Bates pushes back on the idea that Therium, the litigation funder who supported the case against the Post Office, exploited the sub-postmasters or hijacked the litigation for their own financial gain. Bates decries these claims and describes them as “absolute nonsense.”

Bates explains that contrary to the notion that the sub-postmasters were hoodwinked by funders, they were well aware of the terms of the funding arrangement and that “it was the only option” available to combat huge financial advantage held by the Post Office. Furthermore, Bates highlights that both Therium and the sub-postmaster’s lawyers “even took a haircut on their returns to ensure the victims group received some return as they went on to pursue the truth through further court cases, enabling convictions to be overturned and real financial redress to be sought.”

In placing the blame for these types of claims being amplified, Bates points the finger at organisations such as Fair Civil Justice and other “corporate interests”, who he argues have misrepresented the role that litigation funding played in securing the sub-postmasters’ access to justice. Similarly, Bates argues that calls for a cap on litigation funders’ fees would have a detrimental rather than beneficial effect, pointing out that in his case it would have only “provided a target for the Post Office to aim for to achieve its stated goal of forcing us to “give up”.”

Bates closes his opinion piece by calling on the Civil Justice Council to place “claimants’ experiences and interests front and centre”, as it conducts its review of litigation funding.

Lex Ferenda Litigation Funding LLC Announces Promotion; New Appointment

By Harry Moran |

Lex Ferenda Litigation Funding LLC "LF2" is pleased to announce the following promotion and appointment: Andrew Kelley is now LF2's Deputy Chief Investment Officer; Andrew Bourhill joins LF2 as Associate Director, Investments. Kelley previously served as Managing Director, Underwriting and Risk. Bourhill, who was an intern at the company while completing his MBA at Columbia Business School, graduated this month and now joins on a full-time basis.

"LF2 has been working on its first investment fund, committing it to litigation assets around the US. It has always been our plan to increase our commitments to Andrew and Andrew, and we are pleased that the business is in a place that we are able to do that," said Chris Baildon, LF2's Chief Operating Officer.


Kelley, who now serves as the Company's Deputy Chief Investment Officer, is a key part of the management team and works carefully with the co-founders and advisory board to understand risk and manage investments.

"I am excited to expand my role at LF2 and look forward to continuing to help our clients and their counsel successfully navigate the dispute resolution process without having to worry about how to pay for their representation," said Kelley. "As a former outside counsel and in-house lawyer, I understand the complex business and legal dynamics of successfully funding, prosecuting, and resolving disputes."

Prior to joining LF2 in early 2023, Kelley was Associate General Counsel and head of commercial litigation at Fortune 500 company, DaVita Inc.. He has also served as General Counsel to a private equity firm headquartered in Colorado and as outside counsel at two different international law firms in Colorado. Kelley received his J.D. from Harvard Law School and his B.A. from the University of Colorado, Boulder. He is actively licensed to practice law in Colorado.


Bourhill joins as Associate Director, Investments, and will be primarily responsible for creating, developing, and maintaining business relationships with law firms and litigants to ensure that LF2's commercial activity continues to expand while its clients receive best-in-class service.

"I am looking forward to joining the LF2 team and applying my unique perspective in a dynamic industry with such high growth potential," said Bourhill. "As a former litigator and finance professional, I'm excited to enhance outcomes for both our clients and investors while being able to promote access to high quality legal representation."

Prior to obtaining his MBA, Bourhill was an associate attorney at a premier defense law firm in Manhattan specializing in commercial litigation. Bourhill received his J.D. from the Cardozo School of Law, and his B.A. from Emory University. He is actively licensed to practice law in New York.

"I am humbled to have Kelley and Bourhill take expanded roles at LF2 and believe that their increased fidelity with our clients and investors will make our business stronger," said Michael German, Chief Investment Officer at LF2. "We are continuing to expand in the litigation finance space and are excited about the future, particularly with Andrew and Andrew playing strategic roles within the business," German said.

ABOUT LEX FERENDA LITIGATION FUNDINGLF2 is a commercial litigation finance company anchored by institutional capital. LF2 is structured with the objective of meeting the highest standards in investment process management, quality control, risk management, and compliance. For further information about LF2, please visit:

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High-Volume Claims Funding: Strategies for Efficiency and Risk Management

By Louisa Klouda |

The following is a contributed piece by Louisa Klouda, CEO at Fenchurch Legal.

Litigation funding is a well-established concept that provides essential financial support for legal claims. While financing for high-value lawsuits is commonplace, small-ticket funding, especially at high volumes, remains a niche area.

This article explores the challenges and opportunities of funding high volumes of small-ticket claims. It outlines the strategies employed by some small-ticket litigation funders to efficiently manage these claims while ensuring investor confidence.

The Challenge of High-Volume Claims

While a single small claim might seem manageable, the sheer volume of “no win, no fee” cases can overwhelm a law firm's financial and operational resources. Each claim demands substantial time and effort for investigation, evidence gathering, and legal representation.

Without additional funding, managing multiple cases simultaneously becomes a significant financial burden. This can limit a firm's ability to take on new clients or dedicate sufficient resources to each claim.

Litigation funding bridges this gap by providing the resources law firms need to handle a high volume of claims effectively. Securing funding to cover the costs of these claims allows law firms to build strong processes and procedures, ultimately benefiting from economies of scale.

Strategies for Success

Firms specialising in high-volume claim funding can achieve success through a combination of technology, experienced teams, and robust processes.

  • Technology: State-of-the-art software isn't just an advantage – it's an imperative. It can streamline every aspect of the operations, automating repetitive tasks and facilitating efficient case vetting through rigorous risk management, ensuring efficient and reliable funding solutions.
  • Experienced Team: A knowledgeable team plays a crucial role in assessing claims, managing risk, and ensuring compliance with regulations. A team must go beyond just general experience – they should possess deep market knowledge and a nuanced understanding of the specific claim types.
  • Robust Processes: Clearly defined processes for loan approval, monitoring, and repayments are essential for maintaining transparency and accountability.

The Importance of Software

Limitations of manual processes can hinder efficiency. Software solutions can streamline the loan process, enhance risk management, and provide robust audit trails. This software should:

  • Facilitate Efficient Case Vetting: Streamline the process of assessing claims for eligibility.
  • Enhance Risk Management: Built-in safety measures can prevent errors like double-funding and identify potential risks.
  • Ensure Transparency and Accountability: Robust audit trails provide a clear picture of the funding process.

Funders like Fenchurch Legal have gone further. Recognising the limitations of off-the-shelf loan management software, they have built their own bespoke software, which serves as the backbone of their operations and enables them to manage a high volume of claims efficiently. It eliminates manual errors and incorporates built-in safety measures, such as preventing double-funded cases and cross-referencing duplicate data across the platform. This seamless approach is essential for managing drawdowns and repayments and ensuring the integrity of their funding processes.

A Streamlined Funding Process

An efficient funding process benefits both law firms and funders.  Here's a simplified example of how it might work:

  1. Clear Eligibility Criteria: Law firms understand the types of cases that qualify for funding based on pre-agreed criteria (i.e., success rate thresholds).
  2. Batch Uploads: Law firms can easily request funding by uploading batches of cases to a secure online platform.
  3. Auditing and Approval: A sample of cases is audited to ensure they meet agreed upon terms. If approved, funding is released in a single lump sum.
  4. Monitoring and Repayment: Software facilitates seamless monitoring of the loans and the repayment status, ensuring efficient management of repayment schedules.

Managing Risk in High-Volume Funding

Risk management is vital in high-volume funding. Here are some strategies that can be employed to mitigate risk effectively:

  • Diversification: Spreading funding across different law firms and case types is a crucial strategy for mitigating risk in high-volume claim funding. It minimises overexposure and creates a well-balanced portfolio.
  • After the Event (ATE) Insurance: Provides an extra layer of protection for investments in high-volume claim funding. It specifically covers the legal costs if a funded claim is unsuccessful.
  • Rigorous Due Diligence: Thorough assessment of cases and the law firm's capacity to handle them ensures informed decision-making.
  • Continuous Monitoring: Proactive risk identification and mitigation safeguard investments. This includes requesting regular updates and performance data from law firms.


By leveraging technology, team expertise, and robust processes, funders can efficiently manage high-volume small claims, presenting a compelling investment opportunity. This approach can minimise risk and ensure transparency throughout the funding process.

Fenchurch Legal specialises in this niche area, efficiently managing and supporting a high volume of small-ticket consumer claims with an average loan value of £3,000 each. They handle diverse areas such as housing disrepair and personal contract payment claims. Their proven track record of funding over 12,000 cases is driven by their bespoke software, knowledgeable team, and robust processes.

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Lobbying Groups Ramp Up Criticism of Litigation Funding Agreements Bill

By Harry Moran |

Whilst the UK government’s efforts to swiftly move forward with legislation to reverse the impact of the PACCAR decision have been widely praised by the litigation funding industry, it is clear that critics of third-party funding are not prepared to silently sit out the debate on the proposed legislation.

Reporting from The Guardian highlights lobbying efforts being launched against the government’s Litigation Funding Agreements (Enforceability) Bill, which is being supported by Global Counsel, an advisory firm founded by Peter Mandelson. Global Counsel has previously declared that it has engaged in lobbying on behalf of the Fair Civil Justice Campaign, who have long opposed the influence of litigation funders in the UK. 

Seema Kennedy, a former MP who has been vocal in her opposition to third-party funding in the past, has reportedly twice written to the justice secretary to state her arguments against the new legislation. Kennedy’s position as a longstanding critic of the litigation finance industry links the role of these two organisations, as she serves as executive director for Fair Civil Justice and holds a role as a senior adviser at Global Counsel.

Kennedy has criticised the new legislation on several issues, claiming that the bill is “being rushed through parliament” and that the retrospective nature of it “could actually deny redress to certain groups.” Kennedy also argues that the smaller proportion of compensation returned to the sub-postmasters in the Horizon case “is the perfect example of why the litigation funding industry needs to be properly regulated to make sure it puts victims and consumers first.”

Responding to these lobbying efforts, Neil Purslow, chief investment officer of Therium Capital Management, claimed that Fair Civil Justice is “shedding crocodile tears about access to justice”. He argued that the group’s calls for caps on the returns that funders can make from their investments “are just designed to make it so that fewer cases can be funded.”

Reversal of $1.6 Billion IBM Judgement Puts Judgement Preservation Insurance in the Spotlight

By Harry Moran |

The value of litigation insurance, and the natural pairing of this coverage with litigation funding, is often highlighted as one of the core strengths of the current litigation environment. However, a significant reversal of a $1.6 billion judgement has shown that insurers must carefully balance the risks of uncertain outcomes when providing judgement preservation insurance.

Reporting by Bloomberg Law covers the ongoing impact of the decision by the US Court of Appeals for the Fifth Circuit to overturn a $1.6 billion judgement against IBM, which has left Liberty Mutual facing up to $150 million in coverage for judgement preservation insurance it provided. According to Bloomberg’s sources, Liberty Mutual has since withdrawn from “at least two potential litigation insurance deals” since the appeals court’s ruling. The $1.6 billion judgement was reportedly insured by a group of insurers to cover between $500 million and $750 million, with Liberty alone having covered between $100 million and $150 million.

Richard Angevine, a spokesperson for the insurer, said: “Liberty Mutual Insurance does not publicly discuss individual commercial insurance customers.”

Speaking to Bloomberg Law about the broader impact of this type of judgement on the litigation insurance market, Jason Goldy, a global team leader for Alliant Insurance’s Litigation & Contingent Risk Practice, said that insurers will continue to adjust their approach. Goldy said that “in the last six months you’ve seen these adjustments and I would think that you’re likely to see them accelerated if there are material losses,” but clarified that “the market will survive.” 

In a similar vein of thinking, Michael Perich, head of litigation insurance at Lockton, agreed that “the market is fluid and it's proven the ability to adapt to things.”

Federal Court of Australia Rules in Favour of CBA in Shareholder Class Action

By Harry Moran |

Shareholder claims have often been identified as lucrative opportunities for litigation funders, with class actions being brought on behalf of investors who allege that companies have failed in their disclosure and transparency obligations. However, as with all litigation investments, there can be no certainty of success as has been demonstrated in the judgement for two shareholder claims brought in Australia.

An article in The Australian Financial Review covers the judgement handed down in the Federal Court of Australia, where Justice Yates ruled in favour of Commonwealth Bank of Australia (CBA) in two shareholder class actions brought against the bank. The judgement covered the Zonia Holdings Pty Ltd v Commonwealth Bank of Australia and Philip Anthony Baron and Joanne Baron v Commonwealth Bank of Australia cases.

The class actions had been brought over allegations that CBA had failed in its disclosure obligations to shareholders over breaches of anti-money laundering and counter-terrorism financing regulations. In the summary of his judgement released today, Justice Yates concluded that information around these breaches were not “likely to, influence persons who commonly invest in securities in deciding whether to acquire or dispose of CBA shares”.

The summary of Justice Yates’ judgement can be read here, with the full judgement scheduled to be released on 15 May.

Omni Bridgeway, which provided funding for the class action through its Funds 2&3, released an announcement following the judgement and said that “the applicant’s legal team is reviewing the Judgment and assessing the prospects of an appeal.” The funder went on to provide some insight into the financials behind its investment in the case, explaining that “Funds 2&3 invested A$9.6 million in the CBA investment and sold a 20% interest for A$7.5 million in June 2022.” Omni Bridgeway stated that “there is no cash impact from any adverse costs arising from the judgement”, due to its portfolio adverse costs insurance policy.The full Omni Bridgeway announcement can be read here.

Burford Capital Announces Date for Release of 1Q24 Financial Results and Results Call Registration and Participation Details

By Harry Moran |

Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today announces that it will release its financial results for the three months ended March 31, 2024 ("1Q24") on Monday, May 13, 2024, at 7.00am EDT / 12.00pm BST.

Burford will hold a conference call for investors and analysts at 8.00am EDT / 1.00pm BST on Monday, May 13, 2024. The dial-in numbers for the conference call are +1 646 307-1963 (USA) or +1 800 715-9871 (USA & Canada toll free) / +44 (0)20 3481 4247 (UK) or +44 800 260 6466 (UK toll free) and the access code is 7684047. To minimize the risk of delayed access, participants are urged to dial into the conference call by 7.40am EDT / 12.40pm BST.

A live webcast of the call will also be available at, and pre-registration at that link is encouraged.

An accompanying 1Q24 results presentation for investors and analysts will also be made available on Burford's website prior to the conference call at the conference call, a replay facility for this event will be accessible through the webcast at

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High Court Finds ‘Reasonable Cause to Suspect’ A1 is ‘Owned or Controlled’ by Sanctioned Russians

By Harry Moran |

Last month, LFJ covered the Bloomberg Law investigation into the activities of Russian billionaires who have been using litigation finance investments to avoid sanctions in the US and UK. These reports have now been further corroborated in the High Court, where a judge has ruled that litigation funder A1 is indeed still under the ownership or control of sanctioned Russian businessmen.

A new article from Bloomberg Law provides an overview of the 3 May ruling in the proceedings for Vneshprombank v Bedzhamov and Kireeva v Bedzhamov, in which Judge Sara Cockerill wrote that “there is reasonable cause to suspect that A1 is owned or controlled by a designated person or designated persons.” Focusing on the sale of A1 for the measly sum of $900, Justice Cockerill said that the financial documentation offered as evidence for the valuation “fails to provide a coherent or robust justification for that figure.” 

Justice Cockerill went on to offer a clinically robust conclusion that “the so called “verification” of the value is broad brush in the extreme and not at all what might be expected by way of professional valuation.”  The ruling did not hold back on ascribing malign intent to the sale, with Justice Cockerill highlighting that as the sale of A1 was made to an employee of the firm, “there are the bases for reasonable cause lying within the structure and timing of the disposal.”The full written ruling from Justice Cockerill can be read here.

Manolete Partners Reports Record New Case Investments as Insolvencies Soar

By Harry Moran |

Although it is often the high-profile disputes and large scale class actions that receive the majority of attention in the world of legal funding, those funders who are focusing on insolvencies are recording strong results on the back of widespread economic uncertainty.

An article in Legal Futures covers the recent trading update from Manolete Partners which shows that the insolvency litigation funder is achieving new heights, buoyed by an increase in the number of insolvencies. Manolete’s report showed that the funder had reached a new record of 418 live cases, with 311 of these cases representing new investments for the year ending 31 March 2024. This represented an increase of 18% in new case investments compared to the previous year.

The funder demonstrated that it was not only securing new case investments, but is also achieving strong results in terms of bringing these matters to a close. Manolete’s update reported a total of 251 completed cases for the year, which resulted in £24 million in settlements alongside “a small number of favourable judgments”.

Manolete’s chief executive Steven Cooklin attributed these impressive results to the “highest level of UK insolvencies for 30 years”, citing data from Insolvency Service which showed that in 2023, the volume of creditor voluntary liquidations “as at its highest level since 1960.” Cooklin also highlighted Manolete’s strong financial foundations that have been bolstered by an “amendment financing package with HSBC”, explaining that Manolete’s ability to generate liquidity “provides a strong and efficient financing platform for the business to take advantage of these attractive market conditions.”The full trading and business update can be read here.

Funder in AMP BOLR Class Action Could Receive $43M From $100M Settlement

By Harry Moran |

Following LFJ’s reporting yesterday on one Australian class action that has run into difficulties around the issues of settlement approval and a funder’s commission, we are now seeing another case moving forward with its own approval process for the funder’s significant share of a $100 million settlement.

An article in Financial Standard covers the latest developments in the AMP Buyer of Last Resort (BOLR) class action, where the notice of proposed settlement shows that the litigation funder could be entitled to a commission of nearly $43 million from the $100 million total settlement. Augusta Pool 523 (Augusta Ventures), which funded the class action against AMP, has reportedly spent over $16.7 million on legal fees and disbarments during the case. 

Equity Financial Planners, the lead applicant for the class action, has submitted a funding equalisation order that is designed to “spread the cost of the funder's entitlements equally across all group members of the lawsuit.” The order explains that this is not an attempt to “increase the amount paid to the Funder”, but rather ensure that after the funder receives its commission, “all Group Members proportionately share in the payment of the Funder's Entitlement.” 

As the Federal Court assesses the scale of the funder’s return from the $100 million settlement, it will be evaluating whether Augusta’s expenses and Equity Financial Planners’ costs are reasonable and appropriate. This evaluation will take place over the coming months, with a settlement approval hearing scheduled for August 29.

Member Spotlight: Ed Gehres

By John Freund |

Invenio LLP Co-Founder and Managing Partner Ed Gehres has worked on all sides of the litigation finance marketplace. Ed began his career as a defense-side trial lawyer at AmLaw 100 firms, then started doing plaintiffs-side work, served as a partner and practice group leader, and then developed a transactional practice that led to his work as General Counsel of an investment platform that had multiple litigation finance and services companies.

Ed co-founded Invenio LLP to help level the playing field for civil justice. The firm works at the intersection of plaintiffs, the law firms that represent them, and the investors who see that they get their day in court. Leveraging this broad base of experience as litigator, lender, deal lawyer, and law firm leader, Ed now focuses on helping law firms and claimants navigate complex litigation finance transactions.  

Invenio LLP is a leading provider of legal services for those navigating the complexities of the litigation finance industry. We’ve represented both plaintiffs and defendants in litigation; and immersed ourselves in venture start-ups and private equity ventures catering to plaintiffs, law firms, and claims development experts. This gives us a unique blend of expertise suited to untangling the complexities of the litigation finance space and finding solutions. Invenio is committed to increasing access to civil justice by helping plaintiffs of all types access courts and level the playing field against well-resourced defendants.  We believe litigation finance can be a force multiplier for plaintiffs and the firms that represent them. We aim to make the process of exploring and obtaining litigation finance clear, fair, and straightforward.

Since Invenio LLP was founded in January of 2022, the firm has advised on nearly $500 million in credit transactions involving legal assets and has developed an emerging practice involving alternative business structures.

Company Website:

Year Founded: 2022

Headquarters: Invenio is headquartered in Washington, D.C. and has offices in Ft. Lauderdale, FL and Phoenix, AZ.

Area of Focus: Invenio LLP is fully engaged in all aspects of the rapidly emerging litigation finance industry. The firm’s founding partners have each worked on multiple claimant funding and law firm loan transactions and have themselves litigated cases where law firm portfolio funding or third-party case funding was used. Our clients are law firms borrowing for their cases or portfolios, claimants seeking traditional third-party funding, lenders and insurers seeking assistance with underwriting and servicing of cases or portfolios of cases, and parties to litigation finance-related disputes or distressed transactions. We focus on case & portfolio underwriting; borrower & claimant-side representation; alternative business structures; and pre-settlement, post-settlement & medical lien funding.

Member Quote: “I’ve shifted gears multiple times in my career. But I truly believe it was all leading to this important work in litigation finance. This is about ensuring access to the civil justice process. I view it as a life’s work.”

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The Story of Sriracha: A Case Study in Legal Analytics and Litigation Funding

By Nicole Clark |

The following is a contributed piece by Nicole Clark, CEO and co-founder of Trellis. Trellis is pleased to offer LFJ members a complimentary 2 week free trial to its state trial court database.  Click here to access it today. 

Nobody knows exactly what happened. Each party has their own account of the events that unfolded. This, however, is what we do know. Jalapeno peppers were everywhere. Nestled within the rolling hills of Ventura County in Southern California, Underwood Ranches, a family farm operated by Craig Underwood, had been growing the fruit for the past three decades, serving as the sole supplier for Huy Fong Foods, the company responsible for sriracha. Business boomed. Both companies expanded. The world was their oyster.

Then, in 2016, the paradise they built crumbled. Huy Fong Foods filed a lawsuit against Underwood Ranches, accusing the farm of overcharging for growing costs. In response, Underwood Ranches countersued, claiming breach of contract and financial loss. After a three week trial, a jury for the Ventura County Superior Court found merit with both claims, awarding Huy Fong Foods $1.45 million and Underwood Ranches $23.3 million. Huy Fong Foods appealed the verdict, and, unable to claim its award, Underwood Ranches stood on the brink of financial collapse, left without the funds needed to pay its suppliers or its workers.

The Flames of Uncertainty

“The benefit you get from litigation is that litigation doesn’t fluctuate the same way that the markets do,” explains Christopher Bogart of Burford Capital. The financial service company had been called by the attorneys of Underwood Ranches to assist the farm, providing it with $4 million in non-recourse financing—enough to carry it through the appeal process. Still, according to Bogart, the comparative stability of litigation doesn’t eliminate the risks of financing a case like this. The risks, and the costs, can be big.

It’s easy to overlook the uncertainties embedded within the legal system. After all, this is a system that relies on precedents, a situation which suggests that the outcome of any future case should reflect that which came before. As Gail Gottehrer, an emerging technologies attorney based in New York City, remarks, “[i]f your case is similar and has similar facts to another case, the results shouldn’t be too surprising.” The problem, however, is that the results often are surprising. Judges aren’t computers. Neither are juries. They are people, filled with their own beliefs and their own experiences, both of which shape how they interpret laws, apply facts, and consider arguments.

Over the years, attorneys have developed their own rudimentary tools for grappling with this uncertainty. These rudimentary tools have now morphed into powerful machine learning technologies, packed with the ability to comb through millions of state trial court records in order to analyze court dockets, judicial rulings, and verdict data in ways that have rendered civil litigation more transparent and more predictable. But what does the story of sriracha mean for litigation funding teams? How can litigation finance companies use state trial court records to navigate uncertain legal terrains, not just for cases at the end of their lifecycle, but also for those that have only just begun?

Harvesting the Seeds

It could start with a ping. That’s just one way litigation funding companies can tap into new business opportunities. By registering for alerts with a legal analytics platform, litigation funding teams no longer need to source leads through collaborating attorneys. Alerts afford litigation funders with their own bird’s-eye view of the litigation landscape as it unfolds in real-time. These systems can notify users whenever a new case has been filed against a particular company, a new entry has been added to a case docket, or a new ruling has been issued on a legal claim.

To help manage the scale—and the urgency—of this reality, litigation funding teams can also turn to a different tool: the daily filings report. A daily filings report is a spreadsheet that contains detailed coverage of all new civil actions filed in a specific jurisdiction. Each report is emailed to subscribers every morning and includes all case data (i.e., judge, party, counsel, practice area) and metadata (i.e., case summary) as well as direct links to the docket and the complaint. With reliable access to daily filings reports, litigation funders can be the first to know about any new cases filed within a particular jurisdiction, pinpointing the most lucrative cases before anyone else.

Heat Indexing

What happens, then, when a litigation funding team finds a potential case? The daily filings report lets funders access the complaint within seconds, gathering all of the information they need to perform a Google-like search through the millions of state trial court records that have been curated by their preferred legal analytics provider. The goal? To quickly learn more about the litigation history of the parties that are named in the complaint (What other cases does Underwood Ranches have pending? What practice areas drain its budget? Who is its primary outside counsel?) and the law firm that has chosen to represent them (How experienced is Ferguson Case Orr Paterson with this jurisdiction, practice area, opposing counsel? Who are its typical clients? How were those cases resolved?).

The due diligence process deepens with a look at the merits of the case. Here, a litigation funding team can use legal analytics to follow the logics of conventional legal research. With access to a searchable database of prior decisional law, funders can conduct element-focused analyses of each asserted cause of action in the case, identifying the ways in which judges in the county have ruled on similar actions in the past. And, if a judge has already been assigned to the case, these funders can take their due diligence even further, turning their eyes to a judge analytics dashboard—an interactive interface developed by legal analytics platforms to highlight the patterns, the inclinations, and the past experiences of specific judicial officers.

Consider the dispute between Underwood Ranches and Huy Fong Foods, a case presided over by the Hon. Henry J. Walsh. According to Trellis, the average case length in Ventura County is 945 days. Knowing where Walsh sits in relation to this average, as well as the number of cases he has on deck, could help a litigation funder anticipate the likely pace of a case, a key piece of information to have when designing different investment portfolios. But what about juries? How might a jury respond to a breach of contract case in California? Legal analytics platforms like Trellis have also integrated verdict data into their systems, amending their archives of state trial court records to also include information related to case outcomes and settlement awards. A litigation funder conducting due diligence on Underwood Ranches could quickly pull a random sample of agricultural-related breach of contract claims in California, identifying the value range of verdict and settlement amounts (median: $5,650,798; average $9,331,712) and the frequency of plaintiff verdicts (62.5 percent). Litigation funders no longer need to wonder how much a case might be worth. The numbers are there.

The Spiciest Pepper

“There is idiosyncratic risk in the court system that can’t be anticipated,” begins Eva Shang, the co-founder of Legalist. It is widely known that predicting the outcome of litigation can be a risky business. Yet, there is something to be said about the magic of big numbers. Whenever we feed our computers the (meta)data of thousands of cases, deviations get smoothed out and patterns begin to emerge. By shifting our thinking away from stories about individual lawsuits, we can redirect our attention towards that which is frequent, recurrent, predictable. As a case study, the story of sriracha opens the door to a more predictable world, a world where the outcomes of litigation don’t have to fluctuate the way that markets do, not because the courtroom is inherently less uncertain than a stock exchange, but because the magic of big numbers finds increasingly novel ways to make it that way.

By Nicole Clark

CEO and co-founder of Trellis | Business litigation and labor and employment attorney

Trellis is an AI-powered legal research and analytics platform that gives state court litigators a competitive advantage by making trial court rulings searchable, and providing insights into the patterns and tendencies of your opposing counsel, and your state court judges.

Trellis is pleased to offer LFJ members a complimentary 2 week free trial to its state trial court database.  Click here to access it today. 

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Group Members in Merivale Class Action Withdraw Approval Application for $18 Million Settlement

By John Freund |

The announcement of a settlement being reached is often viewed as the point at which a class action arrives at its preferred destination. However, in the case of the Merivale class action in Australia, it has taken only two months since the announcement of the settlement for the mood to sour and fresh obstacles to arise.

Reporting by the Sydney Morning Herald reveals that the $18 million settlement agreed in the class action brought against hospitality company, Merivale, is now under threat. Whilst a Federal Court hearing to review the settlement had been set for May 7, the law firm representing the applicants is now seeking to renegotiate the settlement, after there was a significant increase in the number of members registering for the settlement.

Adero Law’s Rory Markham stated that during the December mediation hearing, the total number of group members had risen to 788, and therefore the $18 million settlement figure now represented “a poor deal that has been substantially diluted by the additional registrations.” As a result, Adero has withdrawn its approval application and has been ordered by the court to provide further information and financial modelling to explain the group members’ decision to withdraw.

Richard McHugh, SC, who acts as counsel for Merivale, suggested that rather than increase the total settlement figure, “an obvious way through is for the funding commission or legal costs to be reduced”.

As LFJ reported in March, the without-admission settlement would have seen Merivale pay $18 million, with $8.6 million set to be distributed to cover legal costs and the litigation funder’s commission. According to the terms of the original agreement, Investor Claim Partner would have received approximately 25% of the settlement whilst Adero would have received approximately $1.75 million, including administration costs for settlement distribution.

In court, Justice Tom Thawley emphasised that regardless of whether or not “the lawyers for the applicants were grossly incompetent” in miscalculating the number of registrants, “the court isn’t going to approve a settlement which isn’t fair and reasonable.”

Legal-Bay Lawsuit Funding Announces Increased Commitment to Product Liability Funding

By John Freund |

Legal-Bay LLC, The Lawsuit Pre Settlement Funding Company, announced today their newfound focus on product liability claims for plaintiffs and lawyers involved in ongoing mass tort litigations. Due to increasing product liability lawsuit loan requests, Legal-Bay has committed more capital to secure even more specialized lawsuit funding for the law firms and plaintiffs out there with product liability cases due to their complex and time-consuming nature.

Legal-Bay's knowledge of product liability lawsuits and experience with mass tort litigations for various products and defective products makes them the leading lawsuit funding firm to call for a complex product defect case involving defective products or product rejection. This experience, as well as Legal-Bay's overall capital, gives them the reputation of the best lawsuit funding firm that exists today.

The lawsuit loan company's team of experts studies each national litigation, often leading the legal funding industry on which cases to begin funding. Many other lawsuit loan companies and lawsuit cash advance places and loan companies do not fund these types of cases due to the complex and time-consuming nature. However, this is just part of why Legal-Bay remains so committed to helping people who have suffered as a result of a defective surgical product or medical device gone wrong, including those that migrate in the body or cause other long-term damage.

If you are wondering what to do when a large corporation will fight your case or if a large corporation or company is fighting your claim, don't hesitate to contact Legal-Bay today. To learn more about product liability lawsuit funding, product liability lawsuit claim loans, product liability lawsuit money, or defective product settlement funding amounts, please visit our new product liability funding site, at: 

Currently, Legal-Bay is expanding their product liability wing as they review various product liability cases and product liability class action suits with national law firms for legal funding options.

Below is a list of just some of the product liability mass tort cases that Legal-Bay's team is actively monitoring or has funded in the past:

  • IVC Filter
  • Hernia Mesh
  • Exactech Implant Recall
  • Hip Implants
  • Knee Implants
  • CPAP Recall
  • Birth Control
  • JUUL E-Cigarettes
  • J&J Talc Products
  • Round Up Weed Killer
  • Medical Devices
  • 3M Ear Plugs
  • Paraquat
  • Just For Men Hair Products
  • Chemical Hair Straightener Products
  • Essure Birth Control IUD
  • Permanent Makeup Claim
  • Eyebrow Tint Claim
  • Essure Birth Control IUD
  • Allergen or Saline or Silicone Breast Implants

Legal-Bay is currently reviewing and assessing case worth or proposed settlement amounts for many other bad products or defective products not listed above.

Chris Janish, CEO commented on today's announcement, "Legal-Bay has been built on product liability funding.  We are the leading and best mass tort funding company in the country, in my sincere opinion.  We work with the top lawyers on each specific litigation, and see cases and litigations from start to finish.  We are a guiding light for many victims who may need guidance on a product liability attorney to choose, and funding for surgical needs due to defective product or legal funding just to pay bills.  We do it all and take substantial risk—unlike most other litigation finance companies—to help our clients and law firms alike." 

To learn more, or to receive a free case evaluation on your bad product claim or defective product suit claim, or if you are looking for a product liability lawyer or product liability law firm please visit Legal-Bay's new website built for these types of claims at: 

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Member Spotlight: Jessica Fillmore

By John Freund |

Jessica Fillmore, MBA, is Co-Founder of Élan™, a consulting agency that specializes in business growth services. Her extensive background has created a diverse and robust wealth of knowledge and experience in digital media, legal notification strategy and implementation, marketing strategy, legal branding, and campaign building.

During her tenure, she has planned and implemented high-profile, complex legal notice communication programs. Jessica also has vast experience as a digital media expert and has worked with global clients across retail B2B, CPG, Education, and Healthcare industries. She leverages this experience as well as access to top industry tools to effectively plan and execute notification plans. 

Jessica has co-authored and published on various aspects of modern legal notice, online claim filings, and current legal notification in class action litigation. She was a lead contributing author for Élan Legal Media's “State of Media, 2022”, “Seven Realities of Modern Legal Notice”, and “How We Drive Online Claim Filings”. 

In the course of her legal marketing experience, she has designed legal notices for a wide range of cases including retail customer, defective drug and device, targeted metropolitan area, nationwide, and more, all resulting in a 100% success rate for delivering estimated impressions and notice requirements. She has also served as an expert in determining ways in which firms can increase effectiveness on a number of cases including catastrophic injury, medical malpractice birth injury, product liability, and more. 

Jessica Fillmore is accredited as a Certified Scrum Master by the Scrum Alliance. She has served on the Minnesota Interactive Marketing Association. She has also co-taught an advanced advertising course for MBA candidates at the University of Minnesota’s Carlson School of Management. 

Company Name and Description: Elan™ is a strategic marketing and consulting team dedicated to driving measurable business growth. We combine a deep understanding of lead generation, cutting-edge marketing tactics, and optimized lead intake to deliver exceptional results. Our team of experienced analysts, media planners, and creatives specializes in the legal and medical industries, allowing us to tailor our solutions to your unique needs.

Here's what sets us apart:

  • Data-driven optimization: We leverage advanced analytics to ensure your marketing spend delivers the highest possible return on investment (ROI).
  • Industry expertise: Our team has a proven track record of success in the legal and medical fields, which grants us an understanding of the specific challenges and opportunities you face on a daily basis.
  • Focus on results: We're not interested in empty promises. We partner with you to achieve tangible growth that moves the needle for your business, and have results that show it.

Élan provides clear and effective marketing solutions to propel your business forward.


Year Founded:  2017

Headquarters:  Minneapolis, MN

Area of Focus: Élan works with Litigation Funding Groups to bridge the gap between funded marketing plans and the top tier law firms that support them. When Élan partners with a funded law firm, we work to ensure not only a clear path of transparent data for all campaign stakeholders, but also offer a strategic approach to building and supporting a quality brand for the firm long term -- funded or not. We work to build long term partnerships that continuously evolve and grow across every point of the campaign. 

Member Quote

“When working with our litigation funding partners, we eliminate any work a client would typically need to handle. Whether that’s working with the law firm, lead intake team, or even case value reports, we manage every component of a funded marketing campaign so that you can focus on your investors. Our goal is to create a streamlined process while providing transparency for every invested dollar spent.”

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Australian Federal Court Approves $24.5M Funder’s Commission for Galactic 

By John Freund |

Reporting by Lawyer’s Weekly covers a major development in two Australian class actions, where litigation funder Galactic obtained a favourable ruling from the full Federal Court to double its commission from its funding of lawsuits brought against 7-Eleven and ANZ Bank. Justices Craig Colvin, Bernard Murphy and Michael Lee, overturned a 2023 judgement by Justice O’Callaghan that refused to make Galactic’s CFO order. As a result, Galactic’s commission from the class actions will drastically rise from $12 million, to a total $24.5 million.

The Federal Court’s ruling on 2 May found that Justice O’Callaghan had been wrong to refuse making the CFO order on the basis that the court did not have the power to do so. The three Justices wrote that Galactic’s $24.5 million commission “is commercially realistic and properly reflects the costs and risks Galactic took on by funding the proceedings.”

The class actions brought against 7-Eleven and ANZ Bank focused on allegations that the fuel and convenience store chain’s standard Franchise Agreement had ‘unfair contractual terms’ that violated consumer law. ANZ Bank were targeted by the second class action over claims that it had failed to meet its obligations under Australia’s Code of Banking Practice, ‘by lending to buy into the franchise system, often up to 100 per cent of the franchise license.’

Level Acquires Tower Street Finance to Target Probate Lending Sector

By John Freund |

An article in ETF Express covers the announcement from Level, a family law and private client lender, that it has acquired Tower Street Finance in order to expand its presence in the probate lending sector. Level’s acquisition strategy is reportedly being guided by the growth in activity around probate lending, which is being fuelled by processing delays and individuals’ demand for third-party capital amid a difficult economic climate.

Commenting on the acquisition, Level’s founder and CEO, George Williamson said: “Tower Street Finance have been the standout market leader since pioneering the probate market in 2020, while Level has done the same in the family law market.  By combining Tower Street Finance’s unparalleled expertise and network in the probate market with our platform and trusted reputation, we have a significant advantage over our competitors.”

Jim Sission, co-founder of Tower Street Finance, will be joining Level alongside two of his employees. Sission said that the acquisition by Level brings together the two company’s expertise across family law and probate lending, and will create “a best-in-class platform for legal funding.”

In addition to the acquisition, Level also announced that it had secured another £10 million in outside investment, comprised of a £5 million equity capital investment from Kendal Capital and £5 million debt investment from Correlation Risk Partners. Kendal Capital’s CEO and co-founder, Grant Kurland will be joining Level’s board of advisers, which already includes notable industry names such as Neil Purslow, CIO of Therium Capital. Kurland said that “the combination of Level & TSF is well placed to capitalise on their respective market leading positions in the family and probate sectors.”

London’s Black-Cab Drivers Bring £250M Claim Against Uber

By John Freund |

An article The Financial Times covers legal actions being brought against Uber on behalf of London’s black-cab drivers, centred on allegations that Uber misled Transport for London (TfL) to obtain its license. Specifically, the lawsuit focuses on the claim that Uber misled TfL around its booking model, and that the company allowed its drivers to receive direct bookings from customers rather than through a central system.

The claim is being brought in the High Court by RGL Management and is representing more than 10,500 black-cab drivers, who argue that they were harmed by unfair competition and are seeking up to £25,000 in compensation per driver. The claimants are represented by Mishcon de Reya and Katch Investment group are providing the litigation funding for the claim, with the total value of the group litigation reaching £250 million.

In a statement, Uber continued to deny the allegations and said that the claims “are completely unfounded”, maintaining its position that the ride-hailing company “operates lawfully in London, fully licensed by TfL.”

More information about the group litigation can be found on RGL Management’s ‘Black Cabs v Uber Litigation 2021’ (BULit21) website.

Legislation to ensure the enforceability of LFAs is progressing smoothly through Parliament

By John Freund |

The following is a contributed piece by Tom Webster, Chief Commercial Officer at Sentry Funding.

So far, the Litigation Funding Agreements (Enforceability) Bill has been passing through Parliament without a hitch.

The government is bringing the legislation in response to the Supreme Court’s decision last summer in PACCAR Inc & Ors v Competition Appeal Tribunal & Ors [2023] UKSC 28, which called into question the enforceability of LFAs.

The Bill was briefly introduced into the House of Lords on 19 March, and was debated at second reading on 15 April. During the debate, while some peers discussed the need for regulation of the litigation funding industry and for careful consideration of whether the retrospective nature of the legislation was justified, no peers opposed the Bill – and many welcomed it.

More recently, during scrutiny at grand committee on 29 April, the relatively small number of peers who attended the session broadly supported the Bill, and several spoke in favour of the need for its provisions to be retrospective.

In terms of the Bill’s drafting, the government proposed some small changes at committee stage, which were waved through by peers. The most significant was to address a potential problem with the original drafting where the LFA relates to the payment of costs rather than funding the provision of advocacy or litigation services.

The problem was that, in the original wording, it could be argued that the Bill only applied to the funding of costs that relate to court proceedings, but not those relating to arbitration, or settlements. This has now been resolved by new wording to make clear that an LFA may relate to the payment of costs following court, tribunal or arbitration proceedings, or as part of a settlement. An LFA may also relate to the provision of advocacy or litigation services.

Meanwhile another government amendment was aimed at avoiding problems for litigants-in-person, by ensuring that the definition of LFAs in the Bill includes agreements to fund the expenses of LiPs, for example where they need to pay for an expert’s report.

During grand committee, peers also expressed their approval of the broad terms of reference that have now been published by the Civil Justice Council for its review of litigation funding, which will include an examination of whether the sector should be regulated; and if so, how. Peers commended the speedy timescale that the CJC has set itself, aiming to produce an interim report by the summer, and a full report by summer 2025.

As the Litigation Funding Agreements (Enforceability) Bill continues its journey through Parliament and the CJC begins work on its review, there are clearly significant changes on the way for the litigation funding sector in the UK.

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Rowles-Davies: Retrospective Provision in Litigation Funding Bill is ‘Fundamentally Flawed’

By John Freund |

In an article shared on LinkedIn, Nick Rowles-Davies, founder and CEO of Lexolent, makes the case against the retrospective aspect of the UK government’s Litigation Funding Agreements (Enforceability) Bill. Whilst acknowledging that many within the industry disagree with his position, Rowles-Davies argues that ‘the Bill should be prospective only and that the retrospective element is fundamentally flawed.’

Rowles-Davies summarizes his extensive article into the following key points:

  1. ‘The starting point for any consideration of the Bill must be firstly to correct the various inaccurate Supporting Documents (to the Bill) such that the law as it stands, and has always stood, is properly reflected. 
  2. The Government has put forward no credible justification to support the retrospective provision in the Bill.
  3. When considered under the true set of facts, this legislation appears to be incompatible with the ECHR. 
  4. The justification for the Bill’s prospective elements and its (arguably unprecedented) retrospective aspect must be considered separately. The Supporting Documents grossly misrepresent the position. Save for pure value transfers from previously funded parties to existing funders, what the Bill properly seeks to achieve can be accomplished through prospective only legislation. 
  5. If retrospectivity survives, it is likely that the matter will come before the courts quickly thereafter in relation to the ECHR.’

Rowles-Davies argues in the article that ‘the Supporting Documents to the LFA Bill provide absolutely no evidence of legal precedent to support the retrospective aspect of the Bill.” He goes on to say that not only is this bill ‘unprecedented’, but it also fails to provide ‘credible “public interest” justification for the retrospective aspect.’ 

In the conclusion of the article, Rowles-Davies calls on both chambers of Parliament to ‘take proper time to explore the foundation upon which the Bill rests and then test its contents after it has been repaired.’ Furthermore, he argues that ‘the positioning of the Bill is disrespectful to a busy Parliament tasked with addressing far more pressing global, social, and public interest matters.’