The $173.6m (£89m) negligence claim brought by the creditors of failed UK company Stone & Rolls against accountancy firm Moore Stephens was struck out by the Court of Appeal yesterday (18 June).

The case – one of the largest and most high-profile cases to be funded by a third party in the UK – was backed by IM Litigation Funding.

The unanimous decision by three judges yesterday, which saw Lord Justice Mummery refer to the case as an "astounding claim", came almost a year after Mr Justice Langley declined to strike the claim out of the High Court (27 July, 2007).

Stone & Rolls – advised by Norton Rose litigation partner Sam Eastwood, with Fountain Court Chambers' Michael Brindle QC instructed as counsel – has appealed yesterday's decision, with the case now likely to go all the way to the House of Lords.

Barlow Lyde & Gilbert head of litigation Julian Randall is leading the team advising Moore Stephens, with Brick Court Chambers heavyweight Jonathan Sumption QC instructed as counsel.

If Stone & Rolls is not successful in its appeal then IM Litigation Funding could find itself footing the bill for adverse costs after taking on a proportion of the risk of the claim.

Funding of litigation has become a major issue in the legal profession of late, with eight out of the City's top 10 law firms already using or assessing external funding for litigation and arbitration cases. On the upside, funders are able to take a share of the 'winnings' on a successful case.