Civil Proceedings: Legal Costs
The question
To ask the Secretary of State for Justice, with reference to the judgment in R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28 as of 26 July 2023, what recent assessment his Department has made of the potential impact of the judgment on the UK’s position as a global centre for dispute resolution and on the wider legal services sector.
Answered by Sarah Sackman
The Government recognisessthat the PACCAR judgment introduced significant uncertainty about whether Litigation Funding Agreements remain valid and brought to light concerns about the regulatory regime that applies to them.
That is why, on 17 December 2025, we announced our intention to introduce legislation to mitigate the effects of the PACCAR judgment and bring in proportionate regulation of litigation funding agreements. Third-party litigation funding plays a critical role in access to justice and in maintaining the attractiveness of England and Wales as a jurisdiction and we are committed to ensuring it works fairly for all. We will outline next steps in due course.
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