4 New Square Chambers’ George McDonald and Matt Waszak explore new representative actions and the complex interplay between litigation funding and class actions, addressing the legal challenges that arise. They emphasise the importance of courts making early rulings on funding arrangements to ensure the viability of class actions.
Key Topics Discussed:
- Funding Challenges: Issues related to funding agreements and privity of contract among class members.
- Early Court Decisions: The potential for courts to provide early clarity on funding arrangements.
- Conditional Fee Agreements (CFAs): Insights into CFAs, including success fees and cost recovery for class representatives.
- Damages-Based Agreements (DBAs): Limitations and challenges of DBAs in collective actions.
- Adverse Costs: Discussion on liability for adverse costs in representative actions.
- Legislative Reforms: Speculation on potential reforms to expand the CAT’s collective action regime for consumer claims.
- Judicial Management: The proactive role of courts in managing funding and costs early in litigation.
- Early Determinations: Advantages of pre-emptive court decisions on funding for smoother processes.
- Recommendations for Funders: Guidance on creating tailored funding agreements for representative actions.
