Apple's appeal dismissed by court
The Court of Appeal dismissed Apple's appeal on litigation funding in the Gutmann proceedings
In a significant legal decision, the Court of Appeal today dismissed Apple’s appeal concerning a crucial litigation funding issue linked to the ongoing Gutmann proceedings. This ruling emerges amid anticipation for the Civil Justice Review report and a broader atmosphere of uncertainty within the litigation funding sector. Commentary from Matthew Lo, Director at Exton Advisors, provides insight into the implications of this judgment. Lo remarked, "This judgment helps to deal with one of the key areas of uncertainty in the regime and will come as welcome news for funders with an interest in this space." He emphasised the importance of this ruling in a "post-PACCAR world," noting that any finding mandating funders to receive payment only after class members would have presented a severe setback for the funding market in this jurisdiction, which is currently facing turbulent times.
Lo further explained, "The possibility of being paid out in priority to class members can be fundamental to funders in certain cases, particularly where a high take-up of damages by the class is likely." He stressed that the outcome avoids discouraging funding in cases with high potential for class participation, stating, "It would be a perverse outcome if funders were disincentivised from investing in cases with a possibility of high take-up, which should be the very cases the regime encourages to be brought." Many market participants will likely view this decision as a relief amidst ongoing discussions and developments in litigation finance.