Litigation Funding Agreements (Enforceability) Bill [HL]

1 Enforceability of litigation funding agreements

(1)

Section 58AA of the Courts and Legal Services Act 1990 (enforceability of
damages-based agreements) is amended as follows.

(2)

In subsection (3), after paragraph (a) insert “, but

(aa)

an agreement is not a damages-based agreement if or to the
extent that it is a litigation funding agreement.”

(3)

After subsection (3) insert—

“(3A)

For the purposes of this section a litigation funding agreement is an
agreement which provides that—

(a)

a person providing claims management services (“the funder”)
is to fund (in whole or in part)—

(i)

the provision of advocacy or litigation services (by
someone other than the funder) to the recipient of the
claims management services (“the litigant”),

(ii)

where the litigant is a litigant in person, expenses
incurred by that litigant, or

(iii)

the payment of costs that the litigant may be required
to pay to another person by virtue of a costs order, an
arbitration award or a settlement agreement, and

(b)

the litigant is to make a payment to the funder in circumstances
specified in the agreement.”

(4)

The amendments made by this section are treated as always having had effect.

2 Extent, commencement and short title

(1)

This Act extends to England and Wales only.

(2)

This Act comes into force on the day on which it is passed.

(3)

This Act may be cited as the Litigation Funding Agreements (Enforceability)
Act 2024.