Jurisdiction(s):
United Kingdom

CJC Litigation Funding Review: PACCAR Reversal, Light‑Touch Regulation, FCA Portfolio Oversight, Limited Cost Recovery and a Simplified Contingency Fee Regime

Published on: 05 June 2025

Published by a Law360 reporter

Legal News

Article summary

Three key takeaways from the report beyond the call to undo PACCAR's restrictions

The Civil Justice Council’s final report, issued on 2 June 2025, set its most significant recommendation on persuading the government to legislate to overturn the UK Supreme Court’s contentious PACCAR judgment. It pressed for PACCAR to be reversed first 'to promote certainty' around litigation funding agreements, and for ministers to act rapidly with a statute that draws a clear line between contingency fee arrangements and third‑party funding. The International Legal Finance Association, which represents some of the largest third‑party litigation funders, applauded the call for urgent legislation to unwind PACCAR. Neil Purslow, chairman of ILFA’s executive committee, said they hope the government follows the CJC’s first and most urgent recommendation to legislate at the earliest opportunity to reverse PACCAR’s effects, which for almost two years have denied access to justice for claimants such as the subpostmasters. Yet the wide‑ranging review proposed more than that single reform. It advocates sweeping changes, including 'light-touch' regulation through rules made by the Lord Chancellor, and for the Financial Conduct Authority to supervise portfolio funding. Against that backdrop, Law360 sets out three key takeaways from the report that go beyond the headline plea to...

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