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

30 April 2024

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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.

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.

Proposed changes   

Members speaking at committee stage put forward amendments (PDF) to the bill to be discussed.

How to follow

Explore further information 

Find out more about the bill in the House of Lords Library briefing.

Next steps

Report stage, a further chance to closely scrutinise elements of the bill and make changes, is scheduled.

What's happened so far

Second reading

Second reading, a full debate on the key principles of the bill, took place on Monday 15 April.

Image: Francais a Londres / Unsplash

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