Government publishes bill to reverse impact of PACCAR ruling

The industry is celebrating the UK government’s introduction of The Litigation Funding Agreements (Enforceability) Bill, which restores the pre-PACCAR position that LFAs are not damages-based agreements (DBAs) and thus do not have to comply with the 2013 DBA regulations, but some are not pleased, arguing that the effect of this very short bill is to remove all regulation from the £2.2bn litigation funding industry and “permit funders to continue to offer onerous terms and take excessive proportions of recoveries unabated”.