The steps the UK Government is to take to address the “uncertainty around litigation funding” were clarified this morning in a press release from the Ministry of Justice and a Written Statement by the Lord Chancellor.

In addition to the narrow amendment in the current DMCC Bill - noted in our previous article of 14 February - the Written Statement confirms there will be new legislation “which will apply to all proceedings”, meaning it will be wider than the solution in the DMCC Bill and should resolve the “uncertainty” about enforceability of litigation funding agreements (LFAs) generally.

The press release refers to “options for a wider review of the sector and how third-party litigation funding is carried out”, details of which are to be set out “in due course”. This wider review (which was also noted in our earlier article) might be carried out under the oversight of the Civil Justice Council and could be announced as early as next Monday, 11 March, when the DMCC Bill will be debated again in the Lords, at Report Stage. 

Rather than dealing with the principles of enforceability of litigation funding agreements (LFAs), this review might address the detailed terms of LFAs (such as levels of: solvency, returns, litigation control, adverse costs protection etc) and the structural regulation of the sector generally “particularly given the growth of the litigation funding sector over the past decade.”

There is clearly a good deal of government activity to follow and to engage with over the coming weeks.