CJC litigation Funding Report UK
The Civil Justice Council (CJC) has published its long-awaited final report on the future of litigation funding in the UK. The recommendations mark a significant moment for claimants, legal professionals, and funders alike.
Reversing PACCAR: Clarity and Confidence Restored
At the heart of the report is the message that litigation funding is a vital part of the litigation landscape and a call for urgent legislation to overturn the Supreme Court’s 2023 PACCAR ruling. That decision threatened the enforceability of many commonly used Litigation Funding Agreements (LFAs) by classifying them as damages-based agreements (DBAs).
The CJC has made it clear: LFAs should not fall within the scope of DBA regulations. Their recommendation? That the government move swiftly to confirm that LFAs are lawful, enforceable, and distinct from claims management services by passing primary legislation to reverse the effects of the PACCAR ruling.
This would not only reverse the disruption caused by PACCAR, but provide much-needed legal certainty to solicitors and clients who rely on funding as the only viable means to pursue meritorious claims.
A Call for Proportionate Regulation
The report doesn’t stop at legislative reversal. The CJC also advocates for a “light-touch” regulatory framework tailored to the funding industry. This includes requirements for capital adequacy, conflict checks, transparency around funder returns, and disclosure of funding arrangements.
Rather than imposing caps on funder profits or overregulating the sector, the CJC’s approach aims to protect claimants while ensuring litigation funding remains commercially viable and readily accessible.
Implications for Legal and Insolvency Professionals
For the lawyers we work with, the message is clear: litigation funding is here to stay and it’s evolving. The recommendations support a more transparent, stable framework that protects client interests without creating unnecessary barriers to funding.
At Apex, we welcome this direction. We believe litigation funding should enable access to justice, not complicate it. The CJC’s proposals are a positive step forward for claimants and their advisers.
Looking Ahead
As we await the government’s response, Apex remains committed to providing fast, fair, and flexible funding for commercial disputes which require between £10k and £750k of funding. We’ll continue to monitor developments closely and update our partners as the landscape evolves.
If you have questions about how these changes might affect a current or future case, our team is always here to help.