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  • Equal Justice Under the Law: Why Access to Justice Must Include the Ability to Wait for Justice

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Legal-Bay Urges Caution on Quick-Pay Option in Proposed $800 Million Archdiocese of New York Settlement

Pre-settlement funder Legal-Bay has welcomed the proposed $800 million abuse settlement involving the Archdiocese of New York while warning claimants that the plan's fast-track payment option may undervalue their claims.

As reported by The Mountaineer, the proposal would be paid in two installments — roughly $615 million up front and a further $185 million within about 15 months — covering an estimated 1,300 claims brought under New York's Child Victims Act. Claimants would be able to accept a flat quick-pay amount of $250,000 or submit to an individual evaluation under a points-based matrix that has not yet been released publicly.

Legal-Bay chief executive Chris Janish said the figure represents meaningful progress. "For survivors who have waited years to be heard, an $800 million proposal is an important step toward resolution," he said. He cautioned, however, that the quick-pay election may not deliver fair value for claimants whose circumstances would score higher under individual review, and noted that the matrix remains unpublished, leaving claimants to weigh a certain sum against an unknown alternative.

Janish added that non-recourse funding advances can help plaintiffs avoid accepting an early payment for liquidity reasons alone. Legal-Bay provides pre-settlement advances that are repaid only if the underlying claim resolves successfully.

The company has tracked the Archdiocese proceedings closely, having flagged in April that the case had reached what it described as a critical crossroads for claimants awaiting resolution.

Aperture Portfolio Manager Says Litigation Finance Has Reached an Institutional Inflection Point

Litigation finance is moving from a niche alternative allocation to a recognised corner of specialty private credit, according to Luke Darkow, a portfolio manager at Aperture Investors.

As reported by ABF Journal, Darkow argues that institutional investors are no longer treating legal assets as an exotic curiosity but as a potential source of returns uncorrelated with public markets. "Litigation finance is no longer merely an alternative curiosity," he writes. "It is increasingly viewed as a potential diversifier within their current portfolios."

The case rests partly on the sheer size of the underlying market. U.S. legal services generated roughly $375.7 billion in revenue in 2024 and are projected to reach $427.9 billion by 2029, a compound annual growth rate of 2.64%. Darkow, who says he has personally deployed more than $1.25 billion into litigation finance over his career, frames that spend as a large and persistent financing need rather than a cyclical opportunity.

Aperture's own approach is built around lending to law firms rather than backing individual cases. The firm structures direct loans secured by diversified pools of legal fee receivables, blending post-settlement receivables with near-settlement matters. Darkow contends that this structure reduces the binary outcome risk that has historically made single-case investments difficult for institutional allocators to underwrite, because repayment depends on the performance of a portfolio of claims rather than one verdict.

Aperture, which reported roughly $600 million in litigation finance assets under management earlier this year, is among a group of credit managers positioning law firm lending as a distinct private credit strategy.

New York’s Usury Cap Still Shadows Litigation Funders Despite the State’s New Consumer Funding Statute

New York's new consumer litigation funding statute has not removed the risk that a funding agreement will be recharacterised as a usurious loan, according to a commentary published this week by three lawyers at Glenn Agre Bergman & Fuentes.

As reported by Bloomberg Law, partners Reid Skibell and Joseph Gallagher, with associate Colleen Piasenti, argue that the Consumer Litigation Funding Act — effective 17 June 2026 — gives funders a statutory framework but not a safe harbour. The Act defines consumer litigation funding as non-recourse and caps the funder's total recovery at 25% of the claimant's proceeds. Non-recourse treatment is what keeps a funding agreement outside New York's 16% civil usury ceiling, and the authors contend that courts will look past the label to the economics of the deal.

They point to the July 2026 decision in *Denemark v. New Chapter Capital, Inc.* as the cautionary example. There, a funder advanced legal fees to a party in a matrimonial dispute at a stated 12% interest rate, secured by a UCC-1 lien on marital property and supported by a guaranty that triggered repayment if the spouses reconciled or if either spouse died. The court concluded the structure left the funder recovering in virtually every realistic scenario, making the arrangement a loan in substance at an effective rate of roughly 19%, and voided it.

The practical lesson, the authors suggest, is that risk-reduction devices meant to protect a funder's downside can be the very features that strip away non-recourse status.

Litigation Capital Management Loses Funded Australian Insolvency Claim Backed by A$2.9 Million of Its Own Capital

Litigation Capital Management has disclosed that an Australian court delivered judgment against a funded insolvency claim in which the company had invested A$2.9 million of shareholder capital directly from its own balance sheet.

As reported by Investegate, the AIM-listed funder confirmed on Wednesday that the claim was unsuccessful. LCM said the matter was funded entirely on balance sheet rather than through one of its third-party investment vehicles, meaning the full A$2.9 million exposure sits with shareholders rather than fund investors.

The company said a policy of after-the-event insurance is in place to mitigate its adverse costs risk arising from the judgment. ATE cover typically responds to a successful defendant's costs order, which in Australian proceedings can represent a material liability on top of the funder's own sunk investment. LCM added that it is reviewing the judgment and assessing potential next steps alongside its legal representatives, language that leaves open the possibility of an appeal.

The disclosure arrives at a difficult moment for the funder. LCM announced in September that it would enter an orderly run-off following a full-year loss of A$165.7 million, and has since been working through its existing book rather than writing new business. Adverse outcomes on balance-sheet positions carry more weight in that context, since realisations from the legacy portfolio are the primary source of value available to shareholders.

The announcement was made by chief executive Patrick Moloney and chief financial officer David Collins. Cavendish acts as the company's nominated adviser and broker.

Manolete Posts Record £17.4 Million First-Half Revenue as Forward Book Reaches £69 Million

Insolvency litigation funder Manolete Partners has reported record realised revenue for the six months to 30 September 2026, alongside a record pipeline of signed but unresolved cases, in a trading update issued on Tuesday.

As reported by Investegate, realised revenue for the first half of the 2027 financial year came in at £17.4 million, up 23% from £14.1 million a year earlier. The company's forward book — the estimated future revenue from cases already signed — rose to a record £69 million at 30 September, against £67 million at the March year-end and £56 million twelve months ago. New cases signed in the half carried a forecast revenue value of £17.3 million, a 26% increase on the prior year.

The AIM-listed funder completed 161 cases in the period, up from 146. Cash collection moved the other way: gross cash receipts fell £1.7 million to £12.8 million, and net debt rose £2.1 million to £13.6 million from £11.5 million at the end of March. Manolete separately announced a £3 million settlement in a large insolvency claim on 2 October, after the half-year closed.

Chief executive Mena Halton said the company had performed strongly in the first half, pointing to the record revenue and the continued growth in the forward book.

Market expectations for the full year sit at £30.6 million of revenue and £1.5 million of adjusted realised profit before tax. Manolete will publish full half-year results on 19 November, with an investor presentation the following day.

Delaware Superior Court Adopts Rule Permitting Limited Discovery of Litigation Funding Agreements

Delaware's Superior Court has adopted a civil rule that allows parties to seek narrow discovery about third-party litigation funding arrangements, while keeping the funding agreements themselves out of reach.

As reported by Reed Smith, new Superior Court Civil Rule 26(b)(3), titled "Litigation-funding agreements," took effect on 30 September 2026 and applies to civil matters before the court. The rule defines a covered arrangement as one between a party and a counterparty other than that party's attorney, in which the counterparty agrees to pay litigation expenses and holds both a contractual right to repayment contingent on the outcome and a contractual right to control aspects of the litigation.

Where the definition is met, opposing parties may obtain discovery in four areas: whether such an agreement exists, the identity of the counterparty, how the arrangement satisfies the definition, and the extent of any control or settlement-approval rights. The rule expressly bars discovery of the agreement itself, of information a party supplied to the funder, and of attorney work product. Control provisions may be ordered produced only for cause, and funding agreements remain inadmissible at trial.

The rule follows recommendations issued in 2023 by a Delaware Supreme Court committee, which was set up after the state legislature encouraged a study of transparency in third-party litigation funding. Reed Smith partners Brian M. Rostocki and Nicholas R. Rodriguez wrote the analysis.

Delaware's federal court has drawn attention for its funder-disclosure standing order; the Superior Court rule now extends a narrower, codified version of that inquiry into the state's civil docket.

Omni Bridgeway Closes Second US$1 Billion Fund Series as 99% of Investors Re-Up

Omni Bridgeway has reached the full US$1 billion target for the second series of its flagship funds, the ASX-listed funder announced on Wednesday, taking the group's assets under management to A$5.9 billion.

As reported by Bloomberg Law, the close marks the second time Omni Bridgeway has raised US$1 billion for a single vehicle, following the first such fund in 2019. The company said 99% of investors in the prior series reinvested, with repeat backers accounting for more than half of the new capital and the average commitment running above US$100 million. More than US$300 million has already been deployed into investments.

The structure is equity-funded rather than debt-financed, and Omni Bridgeway itself is taking roughly a 20% general partner co-investment alongside outside institutions. Chief executive Raymond van Hulst told Bloomberg Law that the sector's failures have tended to involve managers funded with borrowings, noting that Omni Bridgeway carries no debt and therefore faces no mismatch between the duration of its liabilities and the long tail of its cases.

The raise lands against a mixed backdrop for listed funders. Omni Bridgeway recorded A$712 million in new commitments in its 2026 financial year and reports 822 completed investments through 30 June 2026 at a portfolio-wide 2.4x multiple on invested capital, with past results including the A$475 million Robodebt settlement and a A$440 million Brisbane floods class action resolution. Ares Management acquired a stake in the funder's investment portfolio in December 2024.

The fund will back single cases and portfolios across intellectual property, antitrust, group claims and arbitration in multiple jurisdictions.

Teddy AI Raises $60 Million Seed Round to Build Compliance-Focused Legal Services Platform

TeddyHoldings.AI, a legal services platform incubated by holding company Tucker's Farm Corporation, has raised $60 million in seed funding and passed $25 million in revenue, adding to the outside capital now moving into law firm aggregation.

According to a press release from Teddy AI, the company describes itself as a compliance- and client-focused, partner-oriented legal services vehicle. It is keeping its specific focus, leadership and cap table confidential for now. The round drew roughly $115 million in equity interest over three weeks of fundraising calls before closing at $60 million, with traditional limited partners, including an endowment manager, among the backers.

Kyle Tucker, founder of Tucker's Farm's private equity arm and formerly of Apollo and Viking, was candid about the limits of the legal rollup thesis. "We think most law firms are tough businesses - key man risk, project-based revenue, a ton of AI risk," he said. He added that the firm is also skeptical of personal injury rollups outside "the top brands/machines," citing concerns over long-term returns on capital and the sustainability of cash flow.

Tucker said Teddy "is not an AI company," and that technology will be used only to the extent it serves clients. The company will revisit the size of a Series A round depending on its reinvestment needs.

Tucker's Farm, which began as a goat dairy in 1994, aims to acquire $100 million to $200 million of long-term assets each year through acquisitions and reinvestment in the lower-middle market.

Equal Justice Under the Law: Why Access to Justice Must Include the Ability to Wait for Justice

The following was contributed by Eric K. Schuller, President, The Alliance for Responsible Consumer Legal Funding (ARC).

As the United States Supreme Court begins a new term, the words carved above the entrance to the Supreme Court Building deserve renewed attention: “Equal Justice Under Law.”

Those four words have greeted generations of Americans approaching the nation’s highest court. But the circumstances surrounding their placement on the Supreme Court Building make them particularly meaningful today.

The phrase was selected for the new Supreme Court Building in 1932, at a time when the United States was in the depths of the Great Depression. Millions of Americans were confronting unemployment, lost savings, financial insecurity, and uncertainty about their futures.

Against that backdrop, the nation chose to place a simple but powerful promise above the entrance to its highest court: Equal Justice Under Law.

Nearly a century later, that principle remains just as important.

Justice should not depend on wealth, influence, or a person's ability to withstand the financial pressures that can accompany a legal claim. Yet for many Americans, access to the courthouse is only part of the challenge. They also need the financial ability to remain there long enough for the legal process to work.

For an injured consumer pursuing a legitimate legal claim, a case can take months or even years to resolve. During that time, everyday financial obligations do not stop. Rent and mortgage payments still come due. Utilities must be paid. Families need food. Cars need gas, and medical and other household expenses continue.

That financial pressure can have a very real effect on access to justice.

The Economic Side of Access to Justice

When we discuss access to justice, the conversation often focuses on access to attorneys and courts. Those are essential, but there is another component that receives far less attention:

Can an individual afford to wait for a fair resolution of a claim?

A well-funded defendant or insurance company may have the financial resources to withstand a lengthy legal process. An individual consumer often does not.

That imbalance matters.

A person facing mounting household expenses may feel compelled to accept a settlement earlier than he or she otherwise would, not because the settlement represents the appropriate value of the claim, but because the electric bill, rent payment, or grocery bill cannot wait.

Consumer Legal Funding can help address that imbalance.

Consumer Legal Funding provides consumers with funds for personal and household needs while a legal claim is pending. It does not finance the litigation itself. The funds are not provided to pay attorneys, expert witnesses, court costs, or other expenses associated with prosecuting the case.

Instead, the money helps consumers meet the ordinary costs of living while their attorneys handle their legal claims.

Importantly, Consumer Legal Funding is non-recourse. Repayment depends upon the consumer obtaining a recovery from the legal claim. If there is no recovery, the consumer does not repay the funding.

Justice Should Not Have a Financial Clock

The principle of “Equal Justice Under Law” does not mean that every litigant will receive the same outcome. Nor should it.

It means that our system should provide a fair opportunity for claims and defenses to be considered on their merits.

Financial hardship should not become an unofficial clock running against an injured consumer.

Imagine two individuals with equally valid claims. One has enough savings to support a family for two years while the case proceeds. The other lives paycheck to paycheck and, because of an injury, may be unable to work at full capacity.

Both individuals technically have access to the same courts. Both may have competent attorneys. Both are protected by the same laws.

But their practical ability to pursue justice can be very different.

If one can afford to wait while the other must accept an early settlement simply to keep a roof over the family's head, we should recognize that economic circumstances have affected their ability to allow the legal process to work.

Consumer Legal Funding cannot solve every financial challenge confronting an injured consumer. But for consumers who choose it, funding can provide something extraordinarily important: Time.

Time to allow their attorneys to do their jobs.

Time for the facts to be developed.

Time for negotiations to proceed.

And time to make decisions about a legal claim based upon the merits of the case rather than the immediate pressure of household bills.

Protecting Consumers While Preserving Choice

Responsible regulation has an important role to play.

Consumers should receive clear contracts and disclosures. They should understand the cost of a funding transaction. Attorneys should acknowledge that their clients have entered into these agreements. Funding companies should never control litigation strategy, direct attorneys, or interfere with settlement decisions.

Those protections strengthen the marketplace.

But regulation should protect consumer choice, not eliminate it.

Policies that make Consumer Legal Funding unavailable or economically impractical do not eliminate the financial hardship that caused a consumer to seek funding in the first place.

The rent is still due.

The utility company still expects payment.

Groceries still have to be purchased.

Removing an option is not the same as removing the need.

A Promise That Still Matters

There is something especially significant about the fact that “Equal Justice Under Law” was placed on the Supreme Court Building during one of the most economically difficult periods in American history.

In 1932, financial hardship was not an abstract concept. It was a reality confronting millions of American families.

Yet at precisely that moment, as the country struggled through an extraordinary financial crisis, those words were chosen for the entrance to an institution intended to represent the rule of law and equal justice.

That history should remind us of something important today.

Economic hardship and access to justice have never existed in separate worlds

A legal right may exist on paper, but exercising that right can become extraordinarily difficult when a person is simultaneously worried about paying the mortgage, keeping the electricity on, buying groceries, or putting gas in the car.

As the Supreme Court begins another term, Americans will once again watch the Justices consider questions involving constitutional rights, federal law, the authority of government, and the responsibilities of individuals and institutions.

The cases will differ. The legal questions will differ. And reasonable people will disagree about how many of those cases should be decided.

But the words above the Court remain constant: Equal Justice Under Law.

Nearly a century after those words were placed on the Supreme Court Building during a period of profound economic uncertainty, their message remains relevant.

Justice should not belong only to those who can afford to wait for it.

Consumer Legal Funding helps give individuals the financial breathing room to allow the legal process to work. It does not determine the outcome of a case. It does not finance the litigation. And it does not replace the attorney-client relationship.

It helps consumers address the realities of everyday life while their legal claims proceed.

That is why Consumer Legal Funding belongs in the broader access-to-justice conversation.

Because the promise carved above our nation's highest court should extend beyond the courthouse steps. The strength of a person's legal rights should not be determined by the size of their bank account.

Consumer Legal Funding: Funding Lives, Not Litigation.

A version of this commentary first appeared in The National Law Review.

Owner-Operators Join the Push for Funding Disclosure as Ohio’s Law Takes Effect

The Owner-Operator Independent Drivers Association has added its voice to the trucking industry's campaign for mandatory disclosure of third-party litigation funding, arguing that defendants in nuclear verdict cases should be told who is financing the claims against them.

As reported by Land Line, OOIDA wants outside funding of lawsuits disclosed as a matter of course rather than contested case by case. The association's position puts owner-operators and small fleets alongside the larger carriers that have driven the disclosure debate to date, and reframes it as a concern for the smallest operators rather than only for well-capitalised defendants.

The piece, written by Keith Goble, is pegged to Ohio's new funding law, which takes effect on 6 October. The statute requires disclosure of third-party litigation funding agreements and bars funding from foreign governments, foreign corporations and foreign investors outright. State Representative Meredith Craig, a Smithville Republican, said that "for too long, foreign actors have profited off Ohio citizens."

Michigan is moving on a broader measure. House Bill 5281 would require disclosure of funding agreements, establish a registration regime for funders operating in the state, prohibit commissions, referral fees and other payments between funders and attorneys or healthcare providers, and bar foreign entities from financing Michigan litigation. State Representative Mike Harris, a Waterford Republican, described the current arrangements as "shadow cash" moving through the civil justice system.

The article does not put a figure on how much outside capital is financing trucking claims, which remains the central gap in the industry's argument for disclosure.

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