Our Director, Guido Demarco, writes for the Oxford Business Law Blog about the shifting dynamics of the litigation funding industry. Along with Rodrigo Olivares-Caminal, Chair in Banking and Finance Law, Queen Mary University of London, they offer a unique perspective on the rise, challenges, and transformative moments within the litigation funding sector, providing invaluable insights into the industry’s current landscape.
Don’t miss the full article here.
“Until now, investors in the litigation funding arena have echoed this thought. However, a recent decision by the UK Supreme Court in R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others( UKSC 28) has raised questions about the the prospects for the litigation funding industry, particularly resulting from the court’s interference with private agreements and its potential consequences for the entire industry”, they write.
This case stems from the July 2016 decision of the European Commission (EC) which found five truck manufacturers—MAN, Volvo/Renault, Daimler, Iveco, and DAF—guilty of breaching the EU’s antitrust rules for colluding on truck pricing.
According to the authors, what makes this case particularly intriguing is that DAF, the party in breach of competition law, challenged the litigation funding agreement, arguing it provided ‘claims management services.’ The article questions the legitimacy of DAF’s challenge and its reliance on a provision meant to protect class formation under the Competition Act 1998.
In the aftermath of the UK Supreme Court ruling, this article raises important questions about the future of the litigation funding industry. As the dust settles, stakeholders are left contemplating the potential impact on access to justice and the delicate balance between legal principles and the evolving landscape of litigation finance.
Have the tables turned in the litigation funding industry? Read the full article here: https://blogs.law.ox.ac.uk/oblb/blog-post/2023/12/have-tables-turned-litigation-funding-industry