1 This Bill addresses the impacts of the UK Supreme Court judgment in PACCAR 1 , which held that litigation funding agreements ("LFAs"), as defined below, were in fact damages-based agreements ("DBAs"), as defined below, therefore making LFAs unenforceable. The Bill will restore the position to that which prevailed before the decision of the Supreme Court, that LFAs are not DBAs and hence are enforceable, by amending the definition of a DBA in section 58AA(3)(a) of the Courts and Legal Service Act 1990 ("CLSA 1990").
1 Case: R (on the application of PACCAR Inc and others) (Appellants) v Compe…