As explained in this previous post, the Court of Appeal has recently dismissed an appeal against a decision which declined to apply the so-called Arkin cap to limit a commercial funder’s liability to the amount of the funding it had provided. The decision confirms that the Arkin cap is not a binding rule, and the court retains a broad discretion as to the extent to which a funder should be liable for adverse costs.

Maura McIntosh has published a post on Practical Law’s Dispute Resolution blog which considers the implications of the decision, both for litigation funders and for defendants to funded litigation. Click here to read the post (or here for the Practical Law Dispute Resolution blog homepage).