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Key Takeaways from the LFJ Podcast with Mani Walia of Siltstone Capital

February 3, 2022

Key Takeaways from the LFJ Podcast with Mani Walia of Siltstone Capital

On the latest episode of the LFJ Podcast, we spoke with Mani Walia, Managing Director, General Counsel and Chief Compliance Officer and Siltstone Capital. Siltstone is a Houston-based alternative investment firm that invests in litigation finance claims, focusing on $500,000 to $5 million funding requests. Siltstone is also producing LitFinCon, the inaugural litigation finance conference in the Houston area, set to take place on March 2nd and 3rd of 2022. Below are some key takeaways from the discussion: Re: Siltstone’s focus areas Siltstone was founded nearly ten years ago in 2013 by a group of entrepreneurial, energy focused investors. Our team being entrepreneurial, was able to recruit folks with a very interesting set of backgrounds—not just energy sophistication on the nitty gritty of energy assets, but a legal team that understood that there might be value in claims. Through the course of our energy work, we discovered that there may be times that we have to evaluate cases and see if there is any merit to a potential case. And that’s where my addition to the team was something that shaped how we look at things. I have a litigation background and am honored to have learned how to case pick from one of the premiere litigation firms in the country. We had the impetus to start a litigation finance fund focused on energy because of the unique skills set that our team displays. So these two strategies are distinct, they have different bases and stakeholders—but there’s overlap. Re: Limited Partners and Structuring of Funds I’ll note that our funds are separate, so we have a set of funds that are tailored to the energy investor, and then a separate set of funds for those who might want exposure to litigation finance. We’re proud to have successfully closed our second such litigation finance fund in December of last year, 2021. Some folks want a little exposure in both areas, in particular because of the uniqueness of our team—the energy expertise and the focusing on finding value in energy litigation. Re: Types of Claims: Jurisdiction, Single case v Portfolio, Sizes? First, we’re really proud to have entered into a very collegial space. Most of the litigation finance brethren that we have have helped pave the way for entities like us. We’re guided by our experience, so we enjoy a laser-like focus with helping provide solutions only in the commercial context. We haven’t ventured outside into consumer finance or injury cases. We also, for the same reasons, enjoy funding patent infringement cases. Earlier in my career, I tried patent infringement cases and by actively litigating a case or subject matter you really develop the ability to understand what makes a case meritorious or advantageous or what makes the case not good. So those are the two sub-focuses in our commercial lending. We enjoy looking at single case risk or portfolio funding. Q: On ESG Investing & Access to Justice At the end of the day, the job of a funder is to make sure there’s access to justice for somebody who thinks he or she should have a day in court. Embedded in that is an inherent ESG leveling-the-playing-field thought process. Learn more about Siltstone’s upcoming event, LitFinCon (the inaugural litigation finance conference in the Houston area), here.

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Commercial People Moves

Omni Bridgeway Bolsters U.S. Team with Claire-Naïla Damamme & William Vigen

By John Freund |

Omni Bridgeway has further strengthened its U.S. litigation finance platform with two senior strategic hires in its Washington, D.C. office. In a move signaling expanded capabilities in both international arbitration and antitrust litigation funding, the global legal finance leader appointed Claire-Naïla Damamme and William Vigen as Investment Managers and Legal Counsel. These additions reflect Omni Bridgeway’s continued commitment to deepening in-house legal and investment expertise amid growing demand for sophisticated funding solutions.

Omni's press release states that Claire-Naïla Damamme brings nearly a decade of distinguished international legal experience to Omni Bridgeway, where she will lead the firm’s U.S. International Arbitration initiative. Damamme’s background includes representing sovereign states and multinational corporations across energy, telecommunications, infrastructure, and technology disputes. Her expertise covers the full lifecycle of investor-state and commercial arbitrations, including enforcement before U.S. courts, honed through roles at top global law firms and institutions like White & Case LLP, WilmerHale, and the International Court of Justice.

William Vigen complements this expansion with more than 15 years of trial and litigation experience, particularly in antitrust enforcement and government investigations. Before joining Omni Bridgeway, Vigen worked at the U.S. Department of Justice’s Antitrust Division and later as a partner in private practice, where he led complex criminal prosecutions and major civil antitrust matters. At Omni Bridgeway, he will spearhead investment sourcing and evaluation in antitrust and related litigation.

According to Matt Harrison, Omni Bridgeway’s U.S. Managing Director and Chief Investment Officer, these appointments underscore the firm’s focus on delivering world-class legal finance expertise both domestically and internationally.

Case Developments Commercial

Archetype Capital Partners Secures Injunction in Trade Secret Battle with Co‑Founder

By John Freund |

A significant legal win for litigation funder Archetype Capital Partners emerged this month in the firm’s ongoing dispute with one of its co‑founders. A Nevada federal judge granted Archetype a preliminary injunction that prevents the ex‑partner from using the company’s proprietary systems for underwriting and managing mass tort litigation while the underlying trade secret lawsuit continues.

According to an article in Bloomberg, Archetype filed suit in September against its former co‑founder, Andrew Schneider, and Bullock Legal Group LLC, alleging misappropriation of confidential methodologies and business systems developed to assess and fund mass tort claims. The complaint asserted that Schneider supplied Bullock Legal with sensitive documents and leveraged Archetype’s systems to rapidly grow the firm’s case inventory from a few thousand matters to well over 148,000, a jump that Archetype says directly undercut its competitive position.

In issuing the injunction, Judge Gloria M. Navarro of the U.S. District Court for the District of Nevada found that Archetype was likely to succeed on its trade secret and breach of contract claims. While the court determined it lacked personal jurisdiction over Bullock Legal and dismissed the company from the suit, it nonetheless barred both Schneider and Bullock from distributing proceeds from a $5.6 billion mass tort settlement tied to video game addiction litigation that had been structured using Archetype’s proprietary systems.

The order further requires the return of all materials containing confidential data and prohibits Schneider from soliciting or interfering with Archetype’s clients.

Case Developments Commercial

Law Firms Collect $48M from BHP Class Action

By John Freund |

In a development drawing fresh scrutiny to fee arrangements in class action proceedings, law firms involved in the high-profile shareholder lawsuit against BHP have collected nearly three times the legal fees they initially represented to the court. The firms took in approximately $48 million from a $110 million settlement approved in the Federal Court of Australia, despite earlier representations suggesting significantly lower costs.

An article in the Australian Financial Review details how the legal teams initially indicated their fees would constitute a relatively modest share of the final settlement. However, court filings reveal a different outcome, with the firms ultimately securing a much larger cut after a revised funding structure was approved during the settlement process.

The underlying class action was brought on behalf of shareholders following the catastrophic 2015 collapse of the Fundão dam in Brazil, and partially funded by G&E KTMC Funding LLC, which is backed by Grant & Eisenhofer and Kessler Topaz Meltzer & Check, two prominent US-based shareholder litigation firms.

The case centered on allegations that BHP failed to adequately disclose risks associated with the dam's operations, leading to sharp share price declines after the disaster. While BHP did not admit liability, the $110 million agreement was one of several global legal settlements related to the event.

The revised fee arrangement was approved as part of a “common fund” order, which allows for legal and funding costs to be deducted from the total settlement on behalf of all group members. The final order was issued without a detailed public explanation for the increased fees, prompting concerns from legal observers and stakeholders about transparency and accountability in class action settlements.