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damages based agreementscollective proceedingsfunding agreements
Sony Interactive v Neill and Ors
Sony Interactive Entertainment Europe Ltd v Alex Neill Class Representative Ltd [2025] EWCA Civ 841
Key Principle
Following PACCAR, a litigation funding agreement in collective proceedings is not an unenforceable damages-based agreement where the funder's primary entitlement is calculated as a multiple of its funding outlay, even if that return is capped by or payable from the proceeds of the litigation, because the fee is not 'determined by reference to the amount of the financial benefit obtained' within section 58AA of the Courts and Legal Services Act 1990.
Area of Law
General
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