Access to Justice

Monday 4th March 2024 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Alex Chalk)]

The Government are announcing today that we will introduce legislation in this parliamentary Session that will address the impacts of the UK Supreme Court judgment in PACCAR, which concerned a claim against truck manufacturers regarding anti-competitive behaviour.

Third-party litigation funding enables people to get funding to bring big and complex claims against bigger, better-resourced corporations, which they could not otherwise afford.

The Supreme Court judgment in July 2023 rendered third-party litigation funding agreements unenforceable. Uncertainty around litigation funding risks a detrimental impact on the attractiveness of the England and Wales jurisdiction as a global hub for commercial litigation and arbitration, and on access to justice more broadly.

This Bill will enhance access to justice and the attractiveness of a thriving UK legal sector, which contributes over £34 billion per annum to the UK economy.

The Post Office Horizon scandal has also underlined the importance of third-party litigation funding, as the postmasters’ claim was only possible due to the backing of a litigation funder. This highlights a clear access to justice deficit which, without legislation to mitigate the impacts of the judgment in full, would continue indefinitely.

The new legislation, which will apply to all proceedings, will remove this risk and allow the Government to deliver a return to a funding regime which promotes access to justice, as well as enhancing the competitiveness of the jurisdiction.

[HCWS306]