The UK Supreme Court rules that many litigation funding agreements are unenforceable (Trucks Cartel)

In a heavy blow to the litigation funding industry, the UK Supreme Court has held that many litigation funding agreements are damages-based agreements and must comply with the relevant regulatory regime. [1] Funders will be urgently reviewing their funding agreements amid widespread concern that many will be unenforceable, in whole or in part, in their present form. For opt-out collective proceedings in the UK Competition Appeal Tribunal, DBAs are not permitted, so the decision is likely to have far-reaching consequences for both existing and future claims. Introduction Litigation funding involves a third-party funder, typically an independent commercial fund, financing all or part of the legal costs of a claim, in return for a share of any potential damages awarded. Litigation Funding