Tag Archives: third-party litigation funding

Potential benefits of portfolio litigation funding

Third-party funding is used to provide access to justice for clients without means to pay for a strong case. At present, the litigation industry is developing. And litigation funding can offer an alternative to the cost burden of litigation. That is portfolio funding.

Portfolio funding means that multiple claims may be considered and funded under a single facility. It enables a law firm to reduce risk and variability as it pursues client matters across its portfolio of engagements. Portfolio funding is able to stabilize a law firm’s financial position. It reduces risk and eases cash flow challenges associated with alternative billing arrangements. Portfolio funding can offer law firms elusive visibility. That is the ability to advance meritorious cases backed by the confidence that certain legal fees will be paid in a timely manner.

Read full article at GlobalLegalPost.com

Summarized by Natalia Tsar.

Litigation Funding Disclosure Can Reduce Costs

In June 2017, the U.S. Chamber of Commerce petitioned the Federal Rules of Civil Procedure to require disclosure of outside funding in all cases. Mark Behrens, chairman of IADC’s civil justice response committee, talked how litigation financing disclosures could help reduce discovery costs for defendants.
According to Behrens, the lawyer groups, including IADC (International Association of Defense Counsel), are interested in disclosure to preserve the integrity of the civil justice system. At present, as stated in the rules, the discovery must be proportional to the needs of the case. Also in the rules, judges can impose cost shifting on plaintiff requests that go beyond what is proportional in the case.
The U.S. Supreme Court in several recent decisions has made it harder for plaintiffs to sue corporations in certain jurisdictions. It has happened as there are jurisdictions where when the plaintiffs sue there, the defendants tend to believe that the law is not going to be applied fairly in their case.

Read full article at NationalLawJournal.com

Summarized by Natalia Tsar.

DEBENHAMS OTTAWAY LLP to Speak at the Litigation Funding Conference

Debenhams Ottaway will speak at the Litigation Funding Conference in London, 2nd October. The Litigation Funding Conference is an intense networking event for third party litigation funding firms, venture capitalists, hedge funds, corporate counsel and attorneys from significantly sized law firms seeking finances for high value claims.
Debenhams Ottaway is a multi-service, innovative law firm based in Hertfordshire. It is known for delivering clients outstanding service and award winning legal advice. The firm deals with lower value but complex commercial litigation.

Read full article at WebWire.com

Summarized by Natalia Tsar.

2nd Litigation Funding Conference in London

The 2nd Litigation Funding Conference will take place October 2 in London. The Litigation Funding Conference is an intense networking event for third party litigation funding firms, venture capitalists, hedge funds, corporate counsel, solicitors and attorneys seeking finances for high value claims. Financial professionals and investors representing significant resources to capital will be present to fund suits they are expressly interested in.

Read full article at WebWire.com

Summarized by Natalia Tsar.

Third-Party Litigation Funding Helps to Get Results

Third-Party Litigation Funding can help attorneys and clients get results.

Litigation process is often expensive. Some clients cannot afford litigation costs due to various reasons. In this case, litigation funding can pay substantial costs of pursuing a lawsuit from complaint to judgment.

Litigation financing can have similar benefits for attorneys. It provides them greater flexibility. It concerns the cases they take and the way they provide representation.

Meanwhile, it is important for lawyers to understand how to manage a litigation financing transaction. The general advice for a lawyer is not to become part of the loan process when suggesting to a client where he may try to get financial help for individual needs. The lawyer also needs to be careful about providing a litigation finance company with information or opinions about the prospects of the client’s case.

Read full article at Litigationfinancejournal.com

Summarized by Natalia Tsar.

Third-party litigation funding is used by companies

Normally, litigation loans have been the purview of people fighting against large insurance companies.  Nowadays, corporations tend to use third-party litigation funding as an instrument to take the pressure off their legal budgets. Meanwhile, investment firms are considering the area as a target.

Commercial litigators are trying to manage financial risk associated with litigation. They tend to view it in accounting terms and even as an investment. Lawyers are concerned that using litigation funding as a vehicle for profit may harm the major goal of providing access to justice.

Read full article at LawTimesNews.com

Summarized by Natalia Tsar.

UK’s Commercial Court permits Third Party Litigation Funding Costs in Arbitration Proceedings

essar-v-norscotIn CL-2016-000188 Essar Oilfield Services Limited v. Norscot Rig Management Pvt Limited, the United Kingdom’s Commercial Court upheld a decision to reward litigation funding costs to the victor of an arbitration proceeding. The Court’s decision to award litigation funding costs was based on the Arbitration Act 1996, which states that an Arbitrator “may determine by award the recoverable costs of the arbitration”, including “the legal or other costs of the parties.”

This is seen as a landmark decision that will draw third-party funded parties more towards arbitration  than litigation.

See full article at Lexology

Summarized by Jonathan Winsley


Litigation funding company commits $1.7 million to a case against Chevron

therium-litigation-funding-icLitigation funders’ traditional cloak of confidentiality was recently ordered to be removed from a litigation funding firm by a federal judge presiding over the putative class action Gbarabe v. Chevron. 

The District Court for the Northern District of California granted Chevron’s motion seeking to require the plaintiff to produce a funding agreement between attorneys for the putative class and Therium Litigation Funding IC, whereby Therium invested $1.7 million in the outcome of the litigation.

In light of the class action nature of the litigation, the Court adopted Chevron’s argument that disclosure of the information regarding third-party funding was necessary to evaluate the adequacy of class counsel, which is one of the elements that a Court considers in determining whether a lawsuit should proceed as a class action.

See full article at LegalNewsLine.

Summarized by Jonathan Winsley