News

Mohsin Patel comments on Court of Appeal ruling on litigation funding agreements, in The Lawyer

Director Mohsin Patel comments on the Court of Appeal ruling in Gutmann v Apple Inc & Ors, which confirmed that litigation funders can take their fee before any damages are distributed to class members.

Mohsin’s comments were published in The Lawyer and Commercial Dispute Resolution (CDR).

“For almost three years, this case has been stuck in a procedural rut due to tactical machinations by the well-heeled lawyers of the largest corporation on the planet . Whilst many will welcome the Court of Appeal unanimous confirmation of the CAT’s prior ruling – particularly after a number of recent disappointing outcomes in the CAT – justice delayed is justice denied.

“The enthusiasm with which well-resourced Defendants continue to deploy to delay and obfuscate meritorious claims has a significant impact on consumer confidence in the collective action regime in this jurisdiction. The courts should give short shrift to these kinds of arguments, and begin to penalise defendants for their conduct.

“Furthermore, legislators should move more comprehensively to clarify the several areas ripe for contention – not least in overturning the widely critiqued PACCAR ruling.

“At a time of economic turmoil and stagnating productivity, the UK legal services sector remains one of the few stand out areas of growth to our economy. It cannot be assumed that this position will remain without innovation and increasing efficiency. Several international litigation funders have already retreated from the UK post PACCAR and an even greater number have reduced their appetite for CAT claims, not least due to the duration risk attaching to such claims. There is an alignment of interest for consumers and funders alike in improving the current position.”