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ARTICLE · 29 DECEMBER 2025

Third-party Litigation Funding – Recent Developments In The UK And EU

Recent developments at both EU level and in the UK reflect an ongoing focus on third-party litigation funding, albeit with different approaches starting to emerge between the EU and UK.

IrelandLitigation, Mediation & Arbitration

Recent developments at both EU level and in the UK reflect an ongoing focus on third-party litigation funding, albeit with different approaches starting to emerge between the EU and UK. Domestically, the subject remains under active consideration by the Irish Law Reform Commission.

Developments in the UK

On 17 December 2025, the UK Government announced its intention to legislate to mitigate the effect of the UK Supreme Court decision in the PACCAR case in 2023. The legislation will also provide for regulation of litigation funding agreements ("LFAs").

Currently, litigation funding in the UK operates via self-regulation (albeit with oversight by representative bodies) together with judicial scrutiny of funding agreements.

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