First judgment from the CAT on the enforceability of litigation funding arrangements post PACCAR

First judgment from the CAT on the enforceability of litigation funding arrangements post PACCAR.

The Competition Appeal Tribunal (CAT) has certified collective proceedings brought on behalf of 8.9 million Sony PlayStation UK customers for damages as a result of alleged supra-competitive pricing of games and add-on content purchased through the PlayStation Store.

The judgment is the first to address a PCR’s funding arrangements following the July 2023 judgment of the Supreme Court in PACCAR in which a majority held that litigation funding agreements which entitle funders to payment based on the amount of damages recovered are Damages-Based Agreements (DBAs). Such agreements are unenforceable unless they comply with the regulatory regime for DBAs, and cannot be used at all in opt-out collective proceedings. In Alex Neil v Sony, the CAT unanimously found the PCR’s revised funding arrangements would be enforceable.

The judgment, issued on 21 November 2023, can be accessed here. 

Nicola Greaney KC and Christopher Moss acted for the Class Representative, Alex Neill Class Representative Limited, instructed by Milberg London LLP in respect of litigation funding issues. 

Nicola Greaney KC is a versatile advocate who acts for individuals, corporate bodies, regulators and public authorities. She is a specialist in costs and litigation funding. Her cases frequently cross over a number of practice areas. Christopher Moss accepts instructions across all chambers practice areas, and has a particular interest in costs and litigation funding.