In the wake of the UK Supreme Court’s landmark R (on the application of PACCAR Inc) v Competition Appeal Tribunal decision, which held that many common litigation funding agreements (LFAs) constituted damages-based agreements (DBAs) and were therefore unenforceable without complying with the Damages-Based Agreements Regulations, the litigation funding market has been in flux.

The ruling upended traditional third-party funding models in England & Wales and sparked a wide range of responses from funders, lawyers and policymakers addressing the uncertainty it created for access to justice and commercial claims. This Life After PACCAR piece brings together leading partners from around the industry to reflect on what has changed and where the market is headed.

An article in Law.com highlights how practitioners are navigating this “post-PACCAR” landscape. Contributors emphasise the significant disruption that followed the decision’s classification of LFAs as DBAs — disruption that forced funders and claimants to rethink pricing structures and contractual frameworks. They also explore recent case law that has begun to restore some stability, including appellate decisions affirming alternative fee structures that avoid the DBA label (such as multiple-of-investment returns) and the ongoing uncertainty pending legislative reform.

Discussion also centres on the UK government’s response: following the Civil Justice Council’s 2025 Final Report, momentum has built behind proposals to reverse the PACCAR effect through legislation and to adopt a light-touch regulatory regime for third-party funders.

A new interview offers a candid look at how litigation funding startups are being shaped by founders with deep experience inside the legal system. Speaking from the perspective of a former practicing litigator, Lauren Harrison, founder of Signal Peak Partners, describes how time spent in BigLaw provided a practical foundation for launching and operating a litigation finance business.

An article in Above the Law explains that Harrison views litigation funding as a natural extension of legal advocacy, rather than a purely financial exercise. Having worked closely with clients and trial teams, she argues that understanding litigation pressure points, timelines, and decision making dynamics is critical when evaluating cases for investment. This background allows funders to assess risk more realistically and communicate more effectively with law firms and claimholders.

The interview also touches on the operational realities of starting a litigation funding company from the ground up. Harrison discusses early challenges such as building trust in a competitive market, educating lawyers about non-recourse funding structures, and developing underwriting processes that balance speed with diligence. Transparency around pricing and alignment of incentives emerge as recurring themes, with Harrison emphasizing that long-term relationships matter more than short-term returns.

Another key takeaway is the importance of team composition. While legal expertise is essential, Harrison notes that successful platforms also require strong financial, operational, and compliance capabilities. Blending these skill sets, particularly at an early stage, is presented as one of the more difficult but necessary steps in scaling a sustainable funding business.