Alistair Croft on why PACCAR may not have much impact on UK insolvency funding agreements
- Author:
- Alistair Croft
- Senior Investment Manager, Senior Legal Counsel - United Kingdom
Alistair Croft, senior investment manager and legal counsel at Omni Bridgeway, recently shared insight with Global Restructuring Review about the UK Supreme Court decision in PACCAR v Competition Appeal Tribunal (“PACCAR”), where the Court found that the LFAs in question in that case did not comply with the damages-based agreements (“DBAs”) regulations. While the Supreme Court recognised its ruling would likely render some third-party LFAs unenforceable, both funders and insolvency lawyers weighed-in on the impact of this decision, including the possible unintended consequences.
In the article, Alistair provides insight into the reasons why DBA regulations may not have much teeth when it comes to certain insolvency claims but notes the instances where practitioners and funders should be wary of compliance. He also opines that the PACCAR decision will affect the manner in which funders in the UK will draft their LFAs moving forward and also predicts the market may see a rise in funders purchasing claims from insolvency practitioners as a way to stay outside the DBA regulatory framework.
Read the article here.