Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
Friday 19 January 2024 6:00 am  |  Updated:  Friday 19 January 2024 10:19 am

Lawyers: Pledge to protect litigation funding welcome – but devil’s in the detail

By: Maria Ward-Brennan

Professional Services Editor

Add as a preferred source on Google
UK companies are anticipating a rise in legal disputes

City lawyers have welcomed plans to change the laws around litigation funding after a recent Supreme Court ruling raised major concerns about whether litigation funds can continue to back certain court cases.

Justice Secretary Alex Chalk vowed this week to reverse “the damaging effects” of a Supreme Court ruling last year “at the first legislative opportunity”.

His commitment came after Alan Bates, a former sub-postmaster who heads the campaign group Justice for Sub-postmasters Alliance, said that this method of financing court cases was crucial in his fight against the Post Office.

Last year, the Supreme Court handed down a ruling in the so-called PACCAR case. PACCAR is a truck hauliers company and is one of the parties in a case involving five major European manufacturing groups, which are being sued for allegedly breaching competition law.

The Supreme Court ruled that the litigation funds backing the claims against the truck companies did not have the correct financial arrangements in place to be able to properly support the court actions.

This ruling has left the litigation funding sector into limbo, raising concerns about funding for ongoing and future litigation. Bates pointed out that the PACCAR judgment has put litigation funding into “jeopardy”.

Commenting on Chalk’s remarks, Martyn Day, co-president of The Collective Redress Lawyers Association (CORLA) explained that this “commitment to legislate as quickly as possible” and to reverse the PACCAR judgment “is very welcome”.

Luke Tucker Harrison, a partner at Keidan Harrison, also welcomed Chalk’s statement.

Read more

City law firm lands record £36bn BHP case

The Royal Courts of Justice in London, England

He explained: “England is a key jurisdiction for both capital and expertise in disputes finance which plays a wider role in the supporting parties to enforce their rights in London-based tribunals. The announcement by the Justice Secretary ensures litigation financing can continue to be offered in a flexible manner maximising its commercial availability to parties.”

Daniel Gore, a senior associate at Withers said: “There might be questions over the true motivation of the government to act now, and potentially in conflict with the general constitutional idea of a separation of powers, but it is a positive move which allows parties like Alan Bates to take on the Post Office.”

Andrew Leitch, a partner at Bryan Cave Leighton Paisner highlighted that the key question now is how far the government will go in reversing the PACCAR judgment.

He explained: “So far, the government’s proposals have been limited to opt-out competition collective actions.” Leitch stated that the Justice Secretary’s comment seem to indicate that PACCAR judgment should be fully reversed, which includes “non-collective proceedings and opt-in claims.”

He noted that if the government is looking at this legislative change in order to preserve funding for cases like the Post Office, “then such an across-the-board reversal may be necessary.”

Day also suggested that “if the government were to cave in and impose ill thought out restrictions on the ways in which funders and law firms operate they would be denying access to justice to millions of citizens whilst giving businesses and corporations, set on using restrictive or unethical practices, a free hand.”

“The amendment to the Digital Markets, Competition and Consumers Bill that is currently going through Parliament is a great start. However, there is no reason why the amendment should apply simply to competition claims,” he added .

Read more

LLPs remain under watchful eye – especially from the taxman

Tax documents and calculator on a desk, symbolizing financial planning and tax preparation for businesses and individuals.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Legal

Trending Articles

  • Burnham tax plans spark investor rush to bank capital gains

  • Nothing fails to file accounts months after dissolution threat

  • I’ve taken the best train trips in the world. Here are my 5 favourites

  • Cruyff turn: Starmer allows pubs to stay open for England World Cup game

  • Nottingham Forest owner Marinakis announces £210m stadium plans

More from City PM

  • City law firm lands record £36bn BHP case

    Legal
    The Royal Courts of Justice in London, England
  • LLPs remain under watchful eye – especially from the taxman

    Legal
    Tax documents and calculator on a desk, symbolizing financial planning and tax preparation for businesses and individuals.
  • Trump blocked from sacking Fed official in landmark Supreme Court ruling

    Politics
  • Millions left unclaimed as public awareness gap exposes flaws in class actions

    Legal
    SWR was previously owned by FirstGroup and MTR Corporation, but is now the responsibility of DfT (Department for Transport) Operator. (A South Western train arrives at Clapham Junction. Photo by Jack Taylor/Getty Images)
  • City law firm Shoosmiths launches Microsoft-led AI tool for junior lawyers

    Legal
    Burges Salmon partners with legal tech startup Wexler to enhance AI-driven litigation support for UK lawyers
  • Thin end of the wedge? LLPs brace for major tax overhaul

    Tax
    Canada
  • ‘Landmark moment’ – AI law firm wins its first-ever court battle

    Legal
    AI technology enhancing business audit processes in a modern office setting with charts and data displays
  • Ex-Lush chief’s lawyers hike costs to ensure their AI model isn’t trained by juniors

    Legal
    Law firms are increasingly deploying AI

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy