R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others

R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others

Litigation funding agreements under which funders are entitled to a percentage of damages recovered constitute 'damages-based agreements' (DBAs) within the meaning of section 58AA of the Courts and Legal Services Act 1990, as amended, because the statutory definition of 'claims management services' is wide and includes the provision of financial services or assistance in relation to the making of a claim. The agreements in question did not comply with the statutory requirements for DBAs and are therefore unenforceable.

Parties
Appellants: PACCAR Inc and others; Respondents: Competition Appeal Tribunal and others; 2nd Respondent: UK Trucks Claim Ltd; 3rd Respondent: Road Haulage Association Ltd; Intervener: Association of Litigation Funders of England and Wales
Jurisdiction
England and Wales
Judgment Date
26 July 2023
Procedural Posture
Judicial Review (on Appeal From Competition Appeal Tribunal) / Supreme Court Final Appeal
Outcome
Appeal allowed (majority); litigation funding agreements held to be unenforceable as DBAs not compliant with statutory requirements.
Legal Topics
Damages Based Agreements, Litigation Funding, Statutory Interpretation, Collective Proceedings, Access to Justice
Civil Procedure Competition Law Legal Services Regulation Damages Based Agreements Litigation Funding Statutory Interpretation Collective Proceedings Access to Justice

Case Brief

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Parties

PACCAR Inc and others

Appellants

Competition Appeal Tribunal and others

Respondents

UK Trucks Claim Ltd

2nd Respondent

Road Haulage Association Ltd

3rd Respondent

Association of Litigation Funders of England and Wales

Intervener

Procedural Posture

Judicial Review (on Appeal From Competition Appeal Tribunal) / Supreme Court Final Appeal

Legal Issues

  1. 1 Whether litigation funding agreements entitling funders to a percentage of damages constitute 'damages-based agreements' (DBAs) under section 58AA of the Courts and Legal Services Act 1990 as amended
  2. 2 Whether such agreements are unenforceable if they do not comply with the statutory requirements for DBAs
  3. 3 Proper interpretation of 'claims management services' in the relevant statutory context

Ratio Decidendi

Litigation funding agreements under which funders are entitled to a percentage of damages recovered constitute 'damages-based agreements' (DBAs) within the meaning of section 58AA of the Courts and Legal Services Act 1990, as amended, because the statutory definition of 'claims management services' is wide and includes the provision of financial services or assistance in relation to the making of a claim. The agreements in question did not comply with the statutory requirements for DBAs and are therefore unenforceable.

Court Disposition

Appeal allowed (majority); litigation funding agreements held to be unenforceable as DBAs not compliant with statutory requirements.

Orders

  • The appeal is allowed. The litigation funding agreements in question are unenforceable as damages-based agreements under section 58AA of the Courts and Legal Services Act 1990.