The Supreme Court today has upheld a challenge to funding agreements relied on in collective proceedings before the Competition Appeal Tribunal. The agreements sought to fund collective proceedings against truck manufacturers relating to the European Commission’s Trucks infringement decision in return for a share of any damages if the claims succeed.
The Supreme Court accepted Paccar and DAF’s argument that such agreements fall within the statutory definition of “claims management services” and “damages-based agreements”. As a result, they are unenforceable in opt-out proceedings and unenforceable in opt-in proceedings unless they comply with the Damages-Based Agreement Regulations 2013. The Supreme Court overturned earlier rulings by the Competition Appeal Tribunal and Divisional Court.
The decision is likely to have far reaching consequences for the litigation funding industry as a whole.
Click here to read more on the Supreme Court website.