A Welcome Win for the Market: Court of Appeal Confirms Funders Can Be Paid Before Class Distribution

The Court of Appeal has today handed down its ruling in Gutmann v Apple Inc & Ors, confirming—unanimously—that litigation funders can be paid their fees before damages are distributed to class members in opt-out collective actions. This is a significant and welcome development for the UK litigation funding market, bringing much-needed clarity. For funders, lawyers, and claimants alike, it’s a reminder that the UK collective redress regime can support all participants in the process, not just in principle, but in practice.

We strongly support the Court of Appeal’s confirmation that funders in opt-out collective proceedings before the Competition Appeal Tribunal (CAT) can be paid from damages before those damages are distributed to class members. This is a vital ruling that underpins the financial viability of group claims and protects the broader ecosystem that enables access to justice.

At its core, our business model—like that of any funder—relies on a balance of risk and reward. We take on significant upfront cost and risk, knowing that even with the best due diligence, not every case will succeed. When cases do succeed, we need the ability to recover a fair return, not hope there’s something left over once everyone else has been paid. This ruling recognises that reality and ensures that funders can continue to play their role in supporting important claims on behalf of consumers and other claimants.

The Court’s decision sends a clear message to the market: the UK’s class action regime remains open for business, and funding it is not a shot in the dark. That’s good news not just for funders, but for the claimants and legal teams who depend on us to bring high-stakes, high-cost litigation.

Of course, this win comes amid wider uncertainty for our sector. The industry is still grappling with the aftermath of PACCAR, with a further key Court of Appeal hearing expected before July. That case will determine whether LFAs structured as a multiple of the capital deployed—now the standard approach post-PACCAR—are enforceable. The stakes are high.

 But for today, we welcome a moment of clarity. This ruling helps steady the ship and reaffirms the critical role that responsible, professional funders play in making collective redress a reality.