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  • An LFJ Conversation with Jim Batson and Robert Le of Siltstone Capital

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Critics Argue Litigation Funding May Lift Malpractice Insurance Premiums

By John Freund |
Healthcare malpractice insurers are re-evaluating how third-party litigation funding could alter claim dynamics, with potential knock‑on effects for premiums paid by physicians, hospitals, and allied providers. An article in South Florida Hospital News and Healthcare Report points out that for providers already facing staffing pressures and inflation in medical costs, even modest premium shifts can ripple through budgets. Patients may also feel indirect effects if coverage affordability influences provider supply, practice patterns, or defensive medicine. While clearly antagonistic towards the industry, the piece outlines how prolonged discovery, additional expert testimony, and higher damages demands can flow through to insurers’ loss ratios and reserving assumptions, which ultimately inform premium filings. It also notes that providers could see higher deductibles or retentions as carriers adjust terms, while some plaintiffs may gain greater access to counsel and case development resources. For litigation funders, med-mal remains a critical niche. Watch for state-level disclosure rules, court practices around admissibility of funding, and evolving ethical guidance—factors that will shape capital flows into healthcare disputes and the trajectory of malpractice premiums over the next few renewal cycles.

Legal Funding Targets Charter School Safety Gaps

By John Freund |
Litigation finance is moving into education safety disputes, with backers supporting claims over preventable injuries tied to lapses at charter schools. In the Tracy case, plaintiffs’ counsel has secured outside capital to pursue allegations centered on inadequate safeguards and uneven enforcement, aiming to drive remedial measures alongside damages. An article in Daily Journal states that the Tracy case highlights safety standards failures and enforcement gaps in charter schools, and that litigation funding is being used to sustain legal efforts intended to compel stronger protocols and clearer lines of responsibility. The report notes that financing can help develop the evidentiary record—through inspections, training audits, and expert testimony—necessary to test whether supervision, reporting, and facilities maintenance met applicable requirements. The matter underscores the fragmented oversight of charter operators, where responsibilities can be split among authorizers, management organizations, and campuses, complicating accountability. Backers view the matter as a test of whether targeted civil litigation can close regulatory gaps without waiting for legislative change. For funders, such matters present impact-oriented opportunities but require careful assessment of immunities, policy limits, and the feasibility of non-monetary outcomes. If results in Tracy prove durable, similar models could emerge in other jurisdictions where charter oversight is diffuse.

Eco Buildings Group Secures Litigation Funding for €195m ICC Claim

By John Freund |

Eco Buildings Group said it has secured full litigation funding from Atticus Litigation Financing for its €195 million arbitration before the International Court of Arbitration arising out of alleged losses tied to actions by government agencies in Kosovo. In the same disclosure, the company confirmed that BSA Law has been retained on a conditional fee arrangement and noted that tribunal nominations are underway.

The announcement identifies Atticus as adviser-backed by industry veteran Nick Rowles-Davies and indicates the fund is scheduled to commence operations in October 2025.

The interim-results RNS, dated September 30, 2025, upgrades the company’s July communication—which described an “offer of full litigation funding”—to a confirmation that funding is now in place, while also updating expected fund timing. Together with the CFA, the package points to a blended financing structure designed to carry the matter through to award.

For funders and counterparties, the key near-term questions are procedural: how quickly the tribunal is fully constituted; whether early case-management orders shed light on timetable, bifurcation, or disclosure; and the degree to which funding terms (to the extent disclosed) signal stamina through potential post-award phases.

From Eco Buildings’ perspective, securing third-party capital at this stage helps ring-fence legal spend and adverse-costs exposure during the most resource-intensive portions of the case. For Atticus, the mandate offers an inaugural high-profile deployment in commercial arbitration, with advisory pedigree that will be familiar to market participants.

LCM Hit by Adverse UK High Court Ruling in Funded Case

By John Freund |

Litigation Capital Management (LCM) said the High Court in London has delivered judgment against its funded party in a commercial claim, marking a setback for the ASX-listed funder. The investment was co-funded with £9.9m from LCM’s balance sheet and £6.1m from Fund I, and the company reiterated that adverse-costs exposure is backed by after-the-event (ATE) insurance. LCM added that it will confer with counsel on next steps, a process that typically encompasses prospects of appeal, costs issues, or settlement positioning.

In the regulatory notice, LCM set out the key economics of the position and clarified the presence of ATE cover—detail that offers unusual transparency around downside risk management. The co-funding split between the corporate balance sheet and the pooled vehicle means any financial impact is dispersed rather than concentrated in a single pocket of capital.

While ATE insurance is not a profit buffer, it is intended to shoulder the counterparty costs risk that can materialize after an adverse outcome, and it can meaningfully limit cash outflow volatility as the matter moves through post-judgment phases.

The disclosure underscores the familiar dynamics of portfolio funding—wins and losses arrive unevenly, but disciplined structuring (co-funding, ATE, and aligned counsel) is designed to keep drawdowns contained. LFJ will track any developments around appeal decisions, cost orders, or portfolio commentary tied to this case as LCM executes its review with counsel.

New Funder Joins Rockhopper Ombrina Mare Case

By John Freund |

Rockhopper Exploration’s half-year results confirm that the prior Ombrina Mare ICSID award has been fully annulled, but the company has already re-filed and says a “new funder” has joined it in submitting a fresh request for arbitration. Rockhopper also reports receipt of €31 million in insurance proceeds tied to the annulment outcome, and notes that any recovery from the new arbitration, net of reasonable costs and expenses, will be used to reimburse insurers for those proceeds.

In a post by Rockhopper Exploration, the company frames the litigation posture alongside a strengthened balance sheet and a separate project financing plan for Sea Lion. The litigation-specific disclosures are notable on two fronts: first, they confirm that funding remains in place for the renewed claim process; second, they set expectations that insurance backers are first in line from any eventual recovery, a structure that can influence both settlement dynamics and timing.

Additional disclosures in recent months have detailed the mechanics around the insurance and Italian asset disposal, including confirmation in late August that the full €31 million entitlement under the policy had been received. For the funding market, Ombrina Mare remains a high-profile test of post-annulment strategy: availability of capital from a “new funder,” together with insurance protection, can preserve claimant optionality despite procedural reset, while also layering senior repayment obligations that will sit ahead of equity-holder recoveries.

Emmerson PLC Announces H1 Results, Including $11m Facility for Morocco ICSID

By John Freund |

Emmerson PLC’s interim results update keeps the focus on its ICSID arbitration against Morocco over the expropriated Khemisset potash project and how it’s being financed. The company confirms a litigation funding facility of up to $11 million, and notes that $0.8 million was drawn during the half.

In a release on Investegate, Emmerson reiterates that it is seeking “full compensation” for the loss of the project, which the company previously valued internally at about $2.2 billion, and says it expects the arbitral tribunal to be constituted around October 2025.

Emmerson adds that is subsidiaries filed the request for arbitration on April 30, ICSID registered the case on May 23, and party-appointed arbitrators have accepted their appointments. The company anticipates filing its memorial around Q1 2026. The funding disclosure—paired with a modest cash balance—underlines Emmerson’s reliance on third-party capital to carry the claim through early milestones without continual equity raises.

The $11 million commitment tracks with Emmerson’s earlier announcement that it had signed a capital provision agreement with a specialist funder at the start of the year; sector reporting at the time flagged that the facility would also defray a “significant portion” of corporate overhead tied to the dispute.

For funders, sovereign disputes can be attractive where treaty protections and damages frameworks are clear; for claimants, they de-risk long timetables and procedural costs, especially when liquidity is tight.

Chamber-Backed Letter Urges House to Back H.R. 2675 “Protecting Our Courts” Bill

By John Freund |

A broad coalition of business, insurance, and tech interests delivered a letter today backing H.R. 2675, the Protecting Our Courts from Foreign Manipulation Act of 2025, citing alleged national‑security and legal integrity risks tied to foreign third‑party litigation funding (TPLF).

The letter, published by the U.S. Chamber of Commerce, argues that foreign entities—including sovereign wealth funds and foreign states—are increasingly using TPLF to quietly advance strategic, political, or economic agendas in U.S. courts. Because these arrangements often lack transparency, they can be used to influence litigation strategy, access sensitive discovery, impose burdensome costs, or undermine U.S. companies.

Under H.R. 2675, parties must disclose any foreign person, state, or fund with a contingent financial interest in litigation. The bill also compels the production of funding agreements for review by courts, opposing parties, and the Department of Justice. Notably, it bans third‑party litigation funding from foreign states and sovereign wealth funds entirely. The coalition argues that these measures are necessary to close “dangerous loopholes” through which foreign actors may weaponize U.S. courts. Of course, no specific examples of foreign influence have been given, leading many industry proponents to deride such arguments as mere scare tactics.

Signatories to the letter represent a wide cross section of sectors—insurance giants, pharmaceutical makers, tech companies, trade associations, and state chambers—in an attempt to underscore broad industry concern about hidden foreign influence in U.S. litigation.

As the bill advances, funders need to assess how best to counteract these industry broadsides with a more proactive PR push of their own.

Trucking Litigation Goes Off the Rails, Targeting FAIR Act Reforms

By John Freund |

An explosive new analysis argues that third‑party litigation funding has severely degraded the integrity of trucking crash litigation, turning what should be routine settlement flows into a combustible battleground. The article contends that private equity and hedge funds now actively bankroll plaintiff cases, driving up pressure on defendants and distorting settlement incentives.

An article in Yahoo Finance notes that proponents of reform are pointing to the recently introduced FAIR Trucking Act, which would grant federal courts original jurisdiction over interstate trucking crash matters in an effort to normalize forum selection, rein in opportunistic lawsuits, and reduce the leverage that funders and plaintiff firms have secured through orchestration. Critics counter that the legislation may overcorrect, diminishing plaintiffs’ access to justice and shifting the balance too heavily toward carriers.

The article describes a stacking effect: funders seed high-volume litigation, plaintiff attorneys cultivate collateral claims, and once litigation proceeds, pressure compels outsized settlements—often before merits are vetted. It suggests the practice has become systemic, not just episodic. The author warns that such funding schemes may be undermining the legitimacy of mass‑tort and claimant-driven liability industries more broadly.

For legal funders, the stakes are especially high. If the FAIR Trucking Act or similar reforms gain traction, they could sharply limit the types of cases funders can support, particularly in high-liability tort sectors. We may see increased scrutiny on capital deployment, more selective underwriting, and renewed debate over legislators’ role in reshaping the funding landscape.

An LFJ Conversation with Jim Batson and Robert Le of Siltstone Capital

By John Freund |

Jim Batson serves as Managing Partner, General Counsel, and Chief Investment Officer of Siltstone Capital’s legal finance strategy, where he leads investment origination, diligence, and portfolio management for global dispute-related opportunities. With over a decade of experience in legal finance, Jim brings a unique blend of legal expertise and investment acumen to Siltstone’s expanding platform.

Before joining Siltstone, Jim served as the Chief Operating Officer at Westfleet Advisors, a litigation finance advisory company, and before that, as the Co-Chief Investment Officer – U.S. at Omni Bridgeway, a global litigation finance fund manager. At Omni, Jim was instrumental in expanding the firm’s U.S. presence, implementing the U.S. investment strategy, and developing one of the most respected teams in the industry.

Jim began his career as a trial lawyer. He later became a partner at Liddle & Robinson in New York, where he handled groundbreaking cases, including the seminal e-discovery case Zubulake v. UBS Warburg. His experience as both a litigator and investor enables him to evaluate risk and opportunity from multiple angles, making him a trusted partner to law firms, claimholders, and investors.

Robert Le is a Founder and Managing Partner of Siltstone Capital. Prior to founding Siltstone, Mr. Le was a Portfolio Manager at an investment platform of Millennium Partners, a hedge fund located in New York. Mr. Le managed a portfolio of public investments in the energy sector. Before Millennium, Mr. Le helped launch the E&P strategy at Zimmer Lucas Partners (“ZLP”), a Utility and Master Limited Partnership (“MLP”) focused hedge fund. During his tenure, the E&P portfolio became the top performing strategy.

Prior to ZLP, Mr. Le worked as an Analyst at Canyon Capital. Prior to Canyon, Mr. Le was an Investment Banking Analyst at Morgan Stanley in the Global Energy Group. Mr. Le graduated from the University of Pennsylvania magna cum laude and as a Benjamin Franklin Scholar. Mr. Le also received a Rotary Ambassadorial Scholarship for postgraduate studies in Sydney, Australia.

Below is our LFJ Conversation with Jim Batson and Robert Le:

How does Siltstone integrate legal considerations into your investment strategies, particularly in the niche asset classes you focus on?

At Siltstone, legal analysis is at the heart of every decision we make. Before we commit capital—whether it’s in complex commercial disputes, or intellectual property—we start by looking at the case through a legal lens.

We’ve also developed proprietary software that allows us to quantify and track those risks in a disciplined way. By integrating legal considerations directly into our financial models, we’re able to bridge the gap between legal strength and economic value. Bringing on Jim Batson further strengthens our focus on diligence, given his breadth of experience.

Siltstone emphasizes 'organically sourced alternative investment opportunities.' Can you elaborate on the process of identifying and securing these unique opportunities?

When we talk about “organically sourced alternative investment opportunities,” we mean opportunities that come to us through the network we’ve built and cultivated.  Over the years, we’ve developed deep relationships across the litigation finance ecosystem, including law firms, businesses, claimants, insurers, experts, and brokers.  Those connections give us access to opportunities early, often before they hit the broader market.

We’ve also worked hard to create platforms that connect the industry more broadly, most notably LITFINCON—the premier litigation finance conference. LITFINCON has become a central gathering point for funders, law firms, insurers, investors, and thought leaders. In January 2026, we’ll host our fifth iteration in Houston, where we will once again be at the center of conversations shaping the industry and making connections.

By combining long-term relationships, our collective experience, and the connections we form at LITFINCON, we’re able to consistently identify and secure unique, high-quality opportunities that align with our investment strategy.

Siltstone aims to provide 'uncorrelated risk-adjusted returns.' What strategies do you employ to ensure the portfolio remains uncorrelated and resilient to market fluctuations?

At Siltstone, when we talk about delivering “uncorrelated risk-adjusted returns,” we mean building a portfolio that’s insulated from broader market swings. Case outcomes move on their own timelines and are driven by judicial processes, not by macroeconomic headlines.

Our proprietary risk-assessment tools enable us to model duration, damages, appeal exposure, and recovery probabilities, which provides discipline in portfolio construction and helps keep correlations low.

This mix of uncorrelated assets, disciplined structuring, and diversified exposure makes the portfolio resilient, regardless of broader market fluctuations.

Could you share insights into any recent developments or trends you're observing in the legal finance sector, and how Siltstone is adapting to these changes?

One of the biggest developments we’re seeing in legal finance is the continued professionalization and institutionalization of the space. What was once a niche, under-the-radar asset class is now drawing attention from major investors who are looking for uncorrelated returns. That shift brings both opportunity and competition.

We’re also watching growth in secondary markets—funders and investors are increasingly finding ways to trade exposure midstream, whether through portfolio sales, insurance solutions, or securitized products. That liquidity dynamic is changing how capital flows into the sector and how risk is managed.

Another important development is the ever-changing landscape of insurance. The use of insurance to protect downside risk has become far more sophisticated, with products ranging from adverse costs coverage to judgment preservation insurance. For funders like us, insurance provides an additional tool to de-risk investments and expand our ability to structure creative solutions for clients and investors alike.

We’re also seeing the rise of technology and data-driven tools. From case analytics to AI-driven damages modeling, the sector is moving toward greater use of predictive insights. At Siltstone, we’ve leaned into this by building proprietary software to better quantify and track litigation risk, which enhances both origination and portfolio management.

Finally, the regulatory conversation is becoming more active. We’re paying close attention to potential disclosure requirements and other legislative proposals. Our approach is to stay ahead of the curve by structuring deals with transparency in mind and building flexibility into our agreements so that regulatory changes don’t disrupt performance.

LITFINCON has quickly established itself as a premier event in the U.S. Now that it’s expanding globally, what factors drove that decision?

LITFINCON has quickly become the premier litigation finance event in the U.S., and expanding globally was the natural next step. As we continue to deploy capital and evaluate opportunities, we’re seeing that the market is increasingly international as claims, structures, and counterparties are emerging across multiple jurisdictions. To stay at the forefront, we need to be engaged globally.

We’re also seeing greater diversity in both the types of cases and the investment structures being developed around the world. Expanding LITFINCON beyond the U.S. allows us to explore those innovations directly, while also connecting with new partners and perspectives.

That’s why, in addition to hosting LITFINCON Houston on January 14–15, 2026, we’ll be taking the event global—with a conference in Singapore this July and another in Amsterdam this Fall. Ultimately, going global is about building on the momentum we’ve created by expanding relationships, opening new doors, and growing a broader, more connected LITFINCON community.