The impact of the PACCAR decision on litigation funders and Apex
There has been much discussion in the legal and professional press about the consequences to litigation funders of the recent Supreme Court decision in R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others, where judgment was handed down at the end of July 2023.
In summary, the decision means that any Litigation Funding Agreement which provides for a return of money and success fee, to the funder, based on a percentage of the damages recovered by the claimant will be treated as a Damages Based Agreement and will therefore potentially be unenforceable, unless it complies with strict statutory requirements.
The Apex business model for return of capital and success fee, has always been based on multiples of the amount invested, so any existing or prospective agreements that we have with our clients are not impacted by this decision.
Apex will continue to work on this basis and remain compliant with all relevant laws/regulations.
We look forward to working with fellow professionals and their clients to provide litigation funding solutions on any viable cases.
If you would like to discuss further, or explore how our funding can potentially help any of your legal cases, please contact Mark Sands by email at email@example.com
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