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Quinn Emanuel Analyse Latest Decision on LFA Enforceability
July 29, 2025
Firm News
In this article for LexisNexis, Quinn Emanuel's London-based Partner Leo Kitchen and Associate Ben Edwards provide an analysis of recent Court of Appeal guidance on Litigation Funding Agreements (LFAs) in Sony.
Key highlights:
- The Court of Appeal confirmed that LFAs where the funders' remuneration is calculated via a multiple of their capital outlay are NOT damages-based agreements (DBAs) and are thus enforceable.
- Critically, this enforceability remains intact even when an LFA contains:
1. Caps on the funder's remuneration based on recovered damages/proceeds
2. Provisions for percentage-based returns where legally permissible
This ruling offers welcome reassurance for the litigation funding market, addressing previous uncertainties around the enforceability of revised LFAs post-PACCAR in collective proceedings before the Competition Appeal Tribunal.
Read here (please be aware that this article requires a subscription to access).