The decision of the Supreme Court in R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28 reverses established practice and understanding of the law.
The challenge from the Supreme Court judgment may be readily addressed in the drafting of funding agreements. CORLA is, however, concerned, in the period of adjustment, as to the effect this may have on access to justice for consumers and others who in seeking to enforce rights through established collective processes depend on litigation funders to match the resources of large corporations.
In the longer term the decision highlights the need for change in the legislative regime for Damages Based Agreements and to provide long needed clarity in this area. There have been two formal inquiries both of which made recommendations for change but that has not been forthcoming. We will advocate that the PACCAR decision should provide the dynamic for the Government to bring in those reforms and ensure that consumers have the resources and confidence to enforce their rights and secure access to justice.
Published on August 1, 2023 by CORLA