UK Delays Litigation Funding Bill Until Summer 2025
One year ago, the UK Supreme Court shook up the litigation funding landscape with its now infamous PACCAR ruling. There has since been a push to reintroduce the Litigation Funding Agreements (Enforceability) Bill, but it appears the decision to do so will now be delayed until this time next year, at the earliest.
City A.M. reports that Lord Sandhurst Guy Rhys wrote to the Ministry of Justice asking if the bill would be reintroduced, and the decision by the Ministry is to wait until an official review has concluded, which should take us into the middle of next year. In its announcement, the Ministry noted "the critical role third-party litigation funding plays in ensuring access to justice," yet also recognized that "concerns have been raised about the need for greater regulation of Litigation Funding Agreements."
The Civil Justice Council is currently reviewing the issue of litigation funding regulation and access to justice in the UK, and aims to conclude its review by the summer of next year.
As expected, litigation funders were not thrilled with the Ministry's response. Neil Purslow, chairman of the International Legal Finance Association, said “it’s deeply disappointing the government has taken the decision to seemingly deprioritise access to justice for people like the sub-postmasters by kicking the can down the road.” Of course, industry opponents such as the U.S. Chamber of Commerce rejoiced at the decision, with Seema Kennedy, executive director of Fair Civil Justice proclaiming that "despite the claims from funders and law firms about the existential risk to the industry, there has been a surge of new group action claims, with funders able to find work-arounds to existing agreements and proceed much the same as before.”
If that sentiment is correct, it dose pose the question as to the purpose of the regulation in the first place. Perhaps the Civil Justice Council will consider that in their forthcoming review.