Cracks show in UK litigation-funding market

The administration of Fenchurch Legal and Woodville Consultants, alongside Litigation Capital Management’s decision to enter an orderly run-off, has prompted debate over risk management and regulation in UK litigation finance, with ILFA chairman Neil Purslow distinguishing traditional institutional funders from lenders to claims businesses, Louise Trayhurn and Simon Southwood of Crescient pointing to excessive leverage, governance failures and problems in the mass-claims market, Faye Moore of Bellevue Law warning of the inherent unpredictability of litigation outcomes, and Kenny Henderson of CMS arguing that continued investment in funded class actions demonstrates the sector’s resilience despite ongoing uncertainty surrounding PACCAR.

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