Litigation Funding Agreements (Enforceability) Bill completes Lords line by line scrutiny

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Members of the House of Lords completed their detailed examination of the Litigation Funding Agreements (Enforceability) Bill at committee stage on Monday 29 April.

Litigation funding agreements (LFAs) are arrangements whereby a third-party funder pays for legal costs in return for a share of damages if the case is won. In July 2023, the Supreme Court ruled that an LFA can be considered a damages-based agreement (DBA) in certain circumstances.

The aim of the Litigation Funding Agreements (Enforceability) Bill is to reverse the Supreme Court's decision, as DBAs are subject to different legislative requirements which may make LFAs unenforceable.

The 2023-2024 session of Parliament ended (prorogued) on 24 May 2024 ahead of the General Election on 4 July and so this bill will make no further progress.

Information on the bill's consideration in the House of Lords can be found below:

Line by line examination

Committee stage is a thorough examination of the individual parts (clauses) of the bill.

Starting from the front of the bill, members work through the clauses in order, considering changes (amendments) to the wording or proposals for new clauses.