On July 26, 2023, the UK Supreme Court decided in R (on the application of PACCAR Inc and others) (Appellants) v Competition Appeal Tribunal and others (Respondents) [2023] UKSC 28 that litigation funding agreements (“LFAs”) — where third party funders agree to finance the legal costs of litigation in return for a percentage of any damages recovered — constitute damages-based agreements (“DBAs”) under UK law. Consequently, LFAs will be unenforceable unless they satisfy the statutory requirements for DBAs. In practice, this decision is likely to render many LFAs that are currently in place unenforceable, and will affect the type of funding arrangements available to claimants in collective proceedings moving forward.Continue Reading UK Supreme Court Hands Down Judgment on Litigation Funding Agreements