Court of Appeal upholds post-PACCAR litigation funding deals

The England and Wales Court of Appeal has delivered a boost to the UK litigation funding industry by approving LFAs set up to comply with the Supreme Court’s 2023 PACCAR ruling by calculating funders’ return as a multiple of their investment rather than a percentage of damages. The Court dismissed an appeal by Sony, Visa, Mastercard and Apple challenging the validity of the LFAs, stating that the effect of their argument was “to produce the absurd result that funding under LFAs in the CAT would become practically impossible save in those cases where the DBA Regulations could be complied with”.