Will The UK Supreme Court Decision In PACCAR Affect Hong Kong Litigation Funding? - Litigation Finance Journal

[Gunnar Larson]

Will The UK Supreme Court Decision In PACCAR Affect Hong Kong Litigation
Funding? - Litigation Finance Journal

Check out my recent article:
https://litigationfinancejournal.com/will-the-uk-supreme-court-decision-in-paccar-affect-hong-kong-litigation-funding/


Gunnar

Will The UK Supreme Court Decision In PACCAR Affect Hong Kong Litigation
Funding? - Litigation Finance Journal

The Hong Kong Department of Justice’s approach to litigation finance and
third party funding is coming into greater focus following the UK Supreme
Court’s July 26, 2023 ruling on R. (on the Application of PACCAR Inc) v
Competition Appeal Tribunal [2023] UKSC 28.


Mondaq reports that PACCAR has defined “damaged-base agreements” or “DBAs”
in the United Kingdom. DBAs are strictly regulated in the UK, now including
litigation funding agreement contract law. Many UK courts have operated
under the assumption that funding of litigation agreements does not fall
under the purview of DBAs. PACCAR’s Supreme Court decision has sparked a
fervent debate around this topic.

Mondaq says that Hong Kong DBA relevancy differs from the UKs DBA approach.
Specifically, in Hong Kong, champerty and maintenance are illegal factors
that can lead to a fine and prison sentence.

It’s important to note that Hong Kong does allow waivers to the general
prohibition of litigation investment if:

1. Third parties share a common interest in funding the outcome of a case.

2. Accessible justice is a prime consideration.

3. Insolvency proceedings are necessary.
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