Therium Litigation Funding A IC v Bugsby Property LLC

Therium Litigation Funding A IC v Bugsby Property LLC

There is a serious issue to be tried that Therium's proprietary claim survives the PACCAR decision because only the percentage-of-recovery DBA element is unenforceable, not the entire LFA; the trust arrangements over the settlement proceeds remain effective, and severance of unenforceable terms is arguable. Therefore, a proprietary injunction is justified over the entirety of the settlement proceeds pending arbitration.

Parties
Applicant: Therium Litigation Funding A IC; Respondent: Bugsby Property LLC
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Application for Proprietary Injunction (asset Preservation/freezing Order) in Support of Arbitration / Interlocutory Application for Interim Relief
Outcome
Proprietary injunction granted in favour of Therium; not limited to funds currently held by Candey.
Legal Topics
Proprietary Injunctions, Asset Preservation Orders, Litigation Funding Agreements, Damages Based Agreements (dbas), Severance of Contract Terms, Enforceability of Funding Agreements, Trusts Over Litigation Proceeds
Arbitration Commercial Law Trusts Contract Law Proprietary Injunctions Asset Preservation Orders Litigation Funding Agreements Damages Based Agreements (dbas) +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 11 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Therium Litigation Funding A IC

Applicant

Bugsby Property LLC

Respondent

Procedural Posture

Application for Proprietary Injunction (asset Preservation/freezing Order) in Support of Arbitration / Interlocutory Application for Interim Relief

Legal Issues

  1. 1 Whether Therium is entitled to a proprietary injunction over settlement proceeds held by Bugsby pending arbitration
  2. 2 Whether the litigation funding agreement (LFA) is unenforceable as a damages-based agreement (DBA) under section 58AA of the Courts and Legal Services Act 1990 following PACCAR
  3. 3 Whether the trust arrangements in the LFA and subsequent agreements remain effective

Ratio Decidendi

There is a serious issue to be tried that Therium's proprietary claim survives the PACCAR decision because only the percentage-of-recovery DBA element is unenforceable, not the entire LFA; the trust arrangements over the settlement proceeds remain effective, and severance of unenforceable terms is arguable. Therefore, a proprietary injunction is justified over the entirety of the settlement proceeds pending arbitration.

Court Disposition

Proprietary injunction granted in favour of Therium; not limited to funds currently held by Candey.

Orders

  • Proprietary injunction over the entirety of the settlement proceeds received by Bugsby, pending arbitration.
  • Precise terms of the order to be settled after hearing counsel on consequential matters.