Glossary
Third-party finance for the cost of bringing a claim, repaid out of the proceeds if it succeeds. How a funder's return may lawfully be calculated has been contested in England since the Supreme Court's PACCAR decision.
Recent Trends
from Commercial Disputes
Litigation funding — where a third party finances a claimant's legal costs in exchange for a share of any recovery — has transformed access to justice for complex commercial claims, though the Supreme Court's decision in PACCAR (2023) temporarily disrupted the market by classifying certain funding agreements as damages-based agreements. Group litigation and collective proceedings (particularly under the Competition Act 1998) are growing in scale and frequency. The rise of remote and hybrid hearings, accelerated by the pandemic, has permanently changed court procedure. Disclosure reform — particularly the mandatory use of the Disclosure Pilot Scheme in the Business and Property Courts — aims to reduce the cost and burden of the traditionally most expensive stage of litigation.
Disclosure
The process by which each party to litigation reveals to the other the documents relevant to the issues in dispute.
Injunction
A court order compelling a party to do something (mandatory) or refrain from doing something (prohibitory), breach of which is contempt of court.
Freezing Order
A court order preventing a party from dealing with or dissipating its assets, designed to preserve funds for a potential future judgment.
Arbitral Award
The binding decision issued by an arbitral tribunal, enforceable internationally under the New York Convention.
Seat of Arbitration
The legal jurisdiction governing the arbitration proceedings (as distinct from the physical venue), determining the courts with supervisory jurisdiction.
Third-Party Funding
An arrangement where an external funder finances a party's legal costs in return for a share of what the claim recovers — a structure English law has treated as contentious since PACCAR.
Pre-Action Protocol
Rules requiring parties to exchange information and attempt settlement before issuing court proceedings, with cost penalties for non-compliance.
Without Prejudice
A legal privilege protecting statements made in genuine settlement negotiations from being disclosed to the court.