ATE/CFA

Senior Costs Judge sets aside “unfair and unreasonable” CFA

ACL Roundtable

The Senior Costs Judge has ruled a law firm’s conditional fee agreement (CFA) unfair because it failed to ensure that its client – whose English was poor – fully understood what he was signing. Setting aside the agreement, Master Gordon-Saker said the CFA was also unreasonable because of the high hourly rates it sought.

June 21st, 2017

Third-party funder and “biggest ever ATE policy” backs £4bn truck collective action

Motorway traffic jam

Third-party litigation funder Therium Capital Management is backing a £4bn opt-in collection action being brought by the Road Haulage Association against truck manufacturers found guilty of illegal price fixing. It has also secured “the largest tranche of after-the-event insurance that’s ever been underwritten”.

June 16th, 2017

Funding update: third-party backing for credit card claims, DBA insurance launch and more

Mark Humphries

City law firm Humphries Kerstetter has secured third-party funding to launch of a new wave of claims against MasterCard and Visa on behalf of a host of companies. The move follows the firm’s recent negotiation of a series of settlements with the card schemes on behalf of Tesco and WH Smith.

June 1st, 2017

Appeal court upholds validity of CFA switch despite legal aid remaining in place

Jason Rowley

The Court of Appeal has upheld a ruling that a conditional fee agreement (CFA) was valid even though the claimant’s legal aid certificate remained in place. “It is quite plain… that the CFA was designed and understood entirely to supersede for all purposes the public funding of the claim,” it found.

May 25th, 2017

Supreme Court backs pre-LASPO recoverability of success fees and ATE premiums

Inaugural Harbour Litigation Funding Annual Lecture - 8 May 2013

The Supreme Court has ruled against three leading newspaper groups over having to pay claimants’ success fees and after-the-event insurance under the pre-LASPO regime, saying that the media’s rights under the European Convention on Human Rights were not engaged as critically as the rights of those suing them.

April 11th, 2017

Competition tribunal rejects bid to throw out first opt-out class action application

Mr Justice Roth

The Competition Appeal Tribunal has rejected strenuous attempts to dismiss the first application to certify an opt-out class action under the new collective proceedings procedure. The tribunal said the fact that the impetus for the action came from the claimant’s solicitors was not objectionable

April 5th, 2017

Supreme Court rejects narrow approach to LASPO transitional provisions on success fees and ATE

Lord Sumption

The Supreme Court has allowed the recovery of a pre-LASPO success fee and after-the-event premium where the conditional fee agreement and insurance had to be extended after 1 April 2013 to cover appeals, in a significant ruling on the Act’s transitional provisions

March 29th, 2017

Burford unveils sharp increase in profits but warns over lack of ATE for big cases

Chris Bogart colour

Litigation funder Burford Capital has announced a 75% increase in net profits for 2016, taking the figure to $115m (£95m), while warning the government that the Jackson reforms had made it impossible to provide after-the-event (ATE) insurance for “large and complex” commercial cases.

March 14th, 2017

ATE insurer escapes £320,000 costs liability because of policy breaches

insurance policy - claim rejected

An after-the-event insurer has escaped liability to pay out £320,000 after the High Court found that its insured had breached four conditions precedent in the policy relating to claims co-operation, information provision and associated clauses.

March 7th, 2017

CFA of claimant signed up in pre-LASPO rush ruled unenforceable

2013 year calendar. April. Isolated 3D image

A law firm which was instructed in the run-up to LASPO coming into force failed to take any substantive steps in the case before 1 April 2013 and as a result their conditional fee agreement fell foul of the Act’s transitional provisions and was unenforceable, a district judge has ruled.

March 3rd, 2017

Blog

Formal regulation – a price worth paying for third-party funders

Christopher Deadman 2

The comments by Lord Faulks QC last week that third-party litigation funding is “in danger of undermining the integrity of our much-admired legal system”, has been met with predictable howls of derision by those involved in the industry. The issue of statutory regulation or licensing has been on the agenda for a while but the creation of the Association of Litigation Funders, with its voluntary code of conduct has gone some way to persuading the Ministry of Justice (before the election, at least) that this is not necessary for the time being.

June 13th, 2017

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