Litigation Funding Agreements (Enforceability) Bill [HL]

Key Points

• Definition expanded to include funding of expenses for litigants in person (not just funded lawyers).
• Definition expanded to cover costs relating to arbitration awards or settlements, in addition to court costs.
• Both amendments to Clause 1 were agreed in Committee, showing support for broader enforceability of funding agreements.
• A probing amendment seeking a formal review of the Act’s impact was not moved in Committee.
• Overall aim is to strengthen enforceability of litigation funding agreements under section 58AA of the Courts and Legal Services Act 1990, with potential effects on access to funding and dispute leverage.

Progress

The bill is in Committee stage in the Lords. Two key amendments broadening the funding definition were agreed; a review-demanding probing amendment was not moved. It will continue through Committee consideration.