HomeInsightsLitigation Funding Agreements: Legislation reversing PACCAR has first reading in Parliament


Following our recent piece about the Government’s intention to reverse the effect of the Supreme Court’s ruling in R (on the application of PACCAR Inc) v Competition Appeal Tribunal [2023] UKSC 28 (“PACCAR”), the proposed legislation has now been introduced to Parliament.

The Bill, titled the Litigation Funding Agreements (Enforceability) Bill, is suitably brief and confirms – doubtless to the relief of those in the litigation funding industry – that litigation funding agreements (“LFAs”) are not “damage-based agreements”, thereby restoring the position prior to PACCAR. The Bill also provides that its provisions will be treated as always having had effect, thereby ensuring that it will apply to any LFAs entered into since the PACCAR judgment. It has been reported that the bill will not be expedited, but rather progress to the next stage “when parliamentary time allows”.

Read the Bill in full here.