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Ever since the Supreme Court’s ruling in PACCAR, it has become a common sight in group proceedings to see defendants bringing appeals over the funding arrangements in these cases. However, a new judgment by the Court of Appeal on one such appeal has offered a significant victory for litigation funders who wish to support these group actions.

A ruling handed down by the Court of Appeal in the case of Justin Gutmann v Apple Inc and others, dismissed appeals brought by Apple over the funding arrangements in the group proceedings brought against the company by Justin Gutmann. 

The Court of Appeal’s judgment related to two grounds of appeal that Apple had raised. Firstly, the CAT’s alleged lack of jurisdiction to make an order to payout a funder’s fees or returns before damages were distributed to class members, and the ability of class representatives to enter into funding agreements that contemplated such orders. Secondly, that the funding agreement in this case ‘created sufficiently perverse incentives that the CAT could not properly authorise’ Mr Gutmann to act as the class representative.

The Court of Appeal’s judgment, led by Sir Julian Flaux Chancellor of The High Court with unanimous agreement from Lord Justice Green and Lord Justice Briss, dismissed Apple’s appeal on both grounds. In the conclusion of his judgment, Flaux wrote that “the CAT does have jurisdiction to order that the funder’s fee or return can be paid out of the damages awarded to the class in priority to the class.” With that fact clearly established, he went on to say that it follows that “that there can be absolutely nothing wrong with the CR entering into a LFA which makes provision for that to happen.”

Leaving no room for any doubt, Flaux stated plainly that “once Ground 2 of the appeal fails, Ground 3 is indeed hopeless.”

Separate appeals brought by Apple over the consequences of the Supreme Court’s PACCAR’s ruling as it relates to LFAs being considered as damages-based agreements, are still yet to be heard. A hearing on this separate ground of appeal is scheduled for June following the Court of Appeal’s lifting of the stay on those appeals on 4 February 2025.

The full judgment from the Court of Appeal in Justin Gutmann v Apple Inc and others can be read here.

Rachel McCarthy has announced that she is taking on a new role as Executive Director of The Milestone Foundation, a 501(c)(3) nonprofit organization that helps people suffering due to a catastrophic accident. 

In a post on LinkedIn, Rachel notes that she has spent the last eight years working at the core Milestone business, where she has been in post as the Director of Strategic Partnerships for the settlement services trustee.  She also explained that this move marks a return to this role on the non-profit side, having served as the foundation’s first Executive Director for three years from 2017 to 2020. 

The Milestone Foundation provides non-recourse consumer litigation funding to families that require financial support to cover basic living expenses during lawsuits. Since the foundation’s beginnings in 2016, it has provided over $4.5 million to more than 600 families and plaintiffs bringing lawsuits across a variety of areas including personal injury, medical malpractice and class actions.

McCarthy said she looks forward to “the new challenges that will come with managing a bigger, stronger non-profit that's committed to helping people who are going through a personal injury lawsuit and need financial support.”

More information about The Milestone Foundation can be found here.

As LFJ covered in February of this year, a landmark deal between Omni Bridgeway and Ares Management Corporation for the establishment of a new fund was progressing smoothly following the initial announcement of the deal in December 2024.

An announcement from Omni Bridgeway revealed that the litigation funder has completed the Fund 9 transaction, which sees Ares Management Corporation acquire a 70% interest in the fund for a total of A$320 million. The final completion of the transaction includes receipt of the final A$45m payment, following Ares’ prior A$275 payment that was announced as part of the fund’s financial close on 25 February 2025. Omni Bridgeway retains a 30% interest in Fund 9, and will remain as the adviser to the fund alongside its management of the legal assets in the fund.

Omni Bridgeway provided additional details on the establishment of Fund 9, explaining that this latest fund has interests in over 150 investments across its other established funds and one remaining balance sheet investment. The funder also noted that the portfolio legal assets in Fund 9 is comprised of both mature investments and those investments that were recently originated over the course of FY25.

Raymond van Hulst, Managing Director and CEO, provided the following statement on the completion of the transaction: 

“We are extremely proud to lead the field together with Ares through this innovative transaction. It is the first continuation fund for legal assets and is highly significant in its scope and size as a secondary market transaction. The transaction demonstrates that deep pools of institutional secondary capital are available to Omni Bridgeway to mitigate the duration risk associated with legal assets. This is driven by our high quality track record built off an institutional-grade asset management platform with a transparent valuation framework. This transaction comes at a formative time for the industry, with (1) growing institutional investor interest in legal assets given the unique asymmetrical and non-correlated returns even during volatile markets, (2) a growing market demand for legal finance, while (3) the industry is maturing and consolidating reflecting the scale, diversification, skills, experience and track record required to be successful over the long term as a manager in this asset class. This transformative transaction positions Omni Bridgeway well for the opportunity set ahead.” 

Jan-Paul Kobarg, Partner at Ares Management, also provided a comment:

“We are pleased to support OBL with this significant transaction, which underscores Ares' ability to deliver bespoke, creative capital solutions at scale. We look forward to working with Raymond and the OBL team as they build on their leadership in an asset class that we believe will be increasingly targeted by institutional investors due to its ability to generate attractive, uncorrelated returns.”

The full announcement which includes an overview of the deal’s strategic rationale and financials can be read here.

Lawdragon has released its 100 Global Leaders in Litigation Finance list for 2025, with the sixth edition of its annual guide ‘honoring the entrepreneurs who enable litigators and law firms to extend their reach in the types of matters they take on, their strategic pathways, and the enhanced access to justice they provide.’ This year’s list includes 174 senior executives from across the world, with this representing a small increase from the 164 individuals highlighted in the 2024 list.

Of those companies with leaders included on the list, Burford Capital saw the highest number of executives recognised with 14, with Therium Capital close behind at 10 individuals, and LCM which had nine of its team listed. 

Looking at the breakdown by jurisdiction across the 174 litigation finance leaders recognised, the US was the most represented country with 85 individuals listed. The UK came in a close second with 51 leaders recognised, and Australia came behind it with 18 executives profiled.

The full list of individuals recognised in 100 Global Leaders in Litigation Finance list can be found here.

Whilst many state legislatures across the U.S. are moving forward with bills imposing blanket restrictions and oversight measures on litigation funding, one state has demonstrated that there is the possibility for legislation to be drafted with a more balanced approach to the issue.

An article in Bloomberg Law covers the passage of a new litigation funding legislation in Kansas, with Governor Laura Kelly approving a bill that seeks to improve transparency around third-party funding whilst still maintaining reasonable levels of confidentiality for those parties involved in funding agreements.

The Substitute for Senate Bill 54 takes a more nuanced approach than similar bills passed by other state legislatures, requiring disclosure of funding arrangements with foreign funders from countries that are considered an adversary by the US government. A further important limitation on the scope of the disclosure requirements in this bill is that it only requires disclosure of the funding agreements to the judge in each case, with no mandatory disclosure to all parties involved in the litigation.

The bill is also notable for being seen as a compromise between two of the most vocal organisations on either side of the debate around the regulation of funding: the International Legal Finance Association and the US Chamber of Commerce, supported by Kansas’ own Chamber of Commerce. 

Paul Kong, executive director of the International Legal Finance Association, thanked the state’s legislature for arriving at “a reasonable, sensible solution”, and urged opponents of the funding industry not to pursue sweeping regulatory bills “that are a solution in search of a problem that does not exist.” Eric Stafford, senior director of government affairs at the Kansas Chamber of Commerce, similarly expressed satisfaction that “the opponents from last year’s bill and proponents of the bill have been able to reach a compromise.”

The full text of the bill can be read here.