Travers Smith is delighted to announce that it has been awarded "Litigation of the Year – Cartel Defence" at the annual Global Competition Review Awards in a ceremony held in Washington DC on 9 April 2024. The award, for creative, strategic and innovative litigation on behalf of a defendant in a private action for cartel damages, recognises Travers Smith's work in acting for the successful appellants in the UK Supreme Court's PACCAR ruling.
The PACCAR ruling represents a very important development for the litigation funding industry and the litigation market more generally. The appeal concerned a challenge to the litigation funding arrangements ("LFAs") of two applicants for a collective proceedings order ("CPO") in the Trucks competition follow-on damages proceedings. The issue on appeal was whether LFAs pursuant to which the funder is entitled to receive a percentage of any damages ultimately recovered constitute "damages-based agreements" within the relevant statutory scheme, and are therefore unenforceable unless they comply with certain regulatory requirements.
The appellants argued that the LFAs in this case were "damages-based agreements" within the meaning of the applicable regulatory framework and as such were unenforceable as they failed to comply with the relevant requirements (which it was common ground between the parties they did not). The Supreme Court agreed with the appellants, with the consequence that the CPO applicants' existing funding arrangements are unenforceable.
The Supreme Court's decision has provided legal clarity on the current statutory position and the opportunity for the UK Government to legislate further to balance the competing interests of access to justice and appropriate protections for funded claimants. The Government has responded by introducing legislation to limit the scope of the DBA regulatory framework, and has announced a separate review into regulation of the litigation funding industry.
The Travers Smith team was led by Caroline Edwards, Huw Jenkin and James Hulmes. Counsel for the appellants were Bankim Thanki KC and Ian Simester of Fountain Court Chambers and Rob Williams KC and David Gregory of Monckton Chambers. De Brauw Blackstone Westbroek (Jolling de Pree and Machteld de Monchy) are the appellants' European advisers.
Read more about the Awards here.
