Litigation funding appeal judgment: multiples are not DBAs

Litigation Funding Appeal Judgement

We’re delighted to share further good news for the UK litigation funding market. Today, the Court of Appeal unanimously dismissed four related appeals which argued that litigation funding agreements calculating a funder’s return by applying a multiple to the capital committed or deployed are damages-based agreements — and therefore unenforceable.

This is an excellent result. It brings much-needed certainty for funders, who can be confident that, even after PACCAR, litigation funding agreements of this kind remain enforceable. At Charles Lyndon, we are committed to supporting access to justice for UK consumers and to helping build a collective action regime that works for classes and all parties involved — including litigation funders, without whom these claims could not be brought.

We would like to congratulate Justin Gutmann on this outcome and thank Nicholas Bacon KC, Daniel Saoul KC and Richard Hoyle for their expert advocacy and support. We are also grateful to Harcus Parker Limited, Milberg London LLP and Hausfeld for their collaboration on the appeals. Thanks too to Joshua Elsey and Charles Udale of Charles Lyndon for their exceptional work on the case.

Finally, we would like to thank Balance Legal Capital LLP for their continued support.