Businesses: Opt-out Class Actions

House of Lords written question – answered on 13th March 2014.

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Photo of Lord Ashcroft Lord Ashcroft Conservative

To ask Her Majesty’s Government whether they intend to clarify whether the prohibition on the use of damages-based agreements in opt-out collective proceedings in Schedule 7 to the Draft Consumer Rights Bill will cover third-party litigation funding agreements.

Photo of Viscount Younger of Leckie Viscount Younger of Leckie The Parliamentary Under-Secretary of State for Business, Innovation and Skills

The Consumer Rights Bill makes clear that any damages-based agreements are not permitted in opt-out collective proceedings. This would include any pre-agreed arrangements whereby third parties would be entitled to an agreed percentage of the damages.

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