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Consumer

Personal Injury Claimant Sues his Former Lawyer and Funder

Consumer litigation funding for personal injury lawsuits rarely make the headlines, with these small cases happening largely out of public sight. However, a dispute between a claimant and his former lawyer and funder is bringing attention to those calling for greater regulation of consumer legal funding. Reporting by Bloomberg Law provides insights into the case of Sean Murtaugh v. Robert S. Goggin, III, Esquire, in which Mr Murtaugh is suing his former lawyer and litigation funder over claims that he is having to pay for legal funding costs that he did not agree to. The lawsuit originated from a personal injury claim that Murtaugh brought against his employer, having received legal representation from Goggin and financing from Jordan Litigation Funding. However, when the case was settled for $475,000, Murtaugh says that Goggin billed him for interest on additional funding ‘to cover the costs of experts, Murtaugh’s medical bills, and depositions.’ In the lawsuit brought against his lawyer, Murtaugh stated that he “had no idea that Mr. Goggin had received litigation funding to cover case costs,” and had “never agreed to pay interest on any of those case costs.” Murtaugh claims that whilst he did agree to funding for six months of personal expenses whilst he was out of work, he never agreed to any funding from Jordan to cover the personal injury lawsuit. Murtaugh reported that the additional bill for costs totalled over $81,000, with the accrued interest bringing the sum owed to almost $137,000. Speaking with Bloomberg Law about the case, the president of the Alliance for Responsible Consumer Legal Funding, Eric Schuller stated that “this is a good example why proper regulation on the industry is needed.” He went on to explain that such regulation could “ensure that both consumers and attorneys are fully understanding as to what their roles are and what the funds can be used for.”
Commercial

Ramco’s CEO Discusses European Funding Trends and Future Growth

Whilst litigation funding in Europe faces several challenges, including the spectre of new regulatory measures and the nuanced differences in the legal systems of individual European jurisdictions, there is still plenty of optimism among the region’s leading funders. A new interview with Ramco’s CEO provides insight into the types of cases and sectors that European funders are focusing on, and where the future of legal finance in Europe may be headed. In an interview with Lawdragon, Cristina Soler, co-founder and CEO of Ramco Litigation Funding, discusses her career in law and the development of the legal finance market in Spain. Across the detailed interview Soler discusses Ramco’s work as “a pioneer and leading innovator in the Spanish market,” as well as the wider trends in the litigation funding industry. Soler describes the wide variety of litigation matters that Ramco is involved in financing, from single-case funding to the monetization of awards. Beyond these litigation cases, “the number of international arbitration cases has grown particularly in recent years,” particularly in the energy sector where funding is often required “because this sector requires very comprehensive and sophisticated technical reports and therefore involves high costs.” Looking at where the litigation finance industry could continue to grow and mature, Soler points to the “continued development of defense funding offerings” as one area that funders could look to innovate in. Soler also reinforces the strong growth potential for dispute funding in the energy sector, predicting an increase in arbitrations “due to energy market volatility on gas prices and other contractual disputes and an increase in investment arbitrations and commercial arbitrations arising from the implementation of ESG regulations.” Turning to the European Union’s plans for increased regulation of third-party funding outlined in the Voss Report, Soler argues that the current proposal is “introducing over-regulation with rigid structures that represent a step backwards for the development of third-party funding.” She goes on to say that there is plenty of room for improvement in the final regulatory structure the EU could implement, suggesting that the best route forward would be for policymakers to seek input from “experts and entities specialized in third-party funding that could provide experience on the needs of these types of transactions.”
Commercial Legal Innovation

Aon’s Stephen Kryiacou Highlights ‘Incredibly Active and Robust’ Litigation Insurance Market

Alongside the global growth in third-party litigation funding over recent years, the parallel litigation risk insurance market has experienced its own surge in activity to meet increasing levels of demand for coverage. As we enter the first weeks of 2024, an interview with a leading broker suggests there are plenty of indicators that the insurance market is still growing with impressive momentum behind it. In the first part of a wide-ranging interview with Above The Law, Stephen Kyriacou Jr., managing director and senior lawyer for Aon’s Litigation Risk Group, discusses the developments in the litigation risk insurance market over the last 18 months. Kyriacou illustrates how the market has seen continued growth, with the broker seeing an increasing volume of submissions and having heard from insurers “that they expected to see between 100 and 120 submissions for 2023.” He explains that this “level of activity would have been unthinkable in the early days of this market.” Kyriacou notes that this growth in submission counts is also reflected in the greater number of insurers writing litigation risk coverage, “with many insurers recently hiring from the litigation funding world.” In terms of the types of deals that are getting done in this growing market, Kyriacou highlights that the UK and EMEA markets are busier than ever, with an additional increase in “cross-border activity where U.S. insureds are buying insurance for U.K. or European litigation risks,” and vice-versa. He goes on to explain that because of these high levels of activity, Aon has now established a “a full team of litigation and contingent risk brokers in the U.K. and Europe, several of whom joined Aon from industry-leading litigation funders.” Turning to the role of litigation finance providers, Kyriacou highlights that these funders “are now especially well-versed in the coverage that is available to them in the market.” Due to this increased level of awareness and understanding from lawyers, funders, and business leaders, Kyriacou states that the litigation risk insurance market “has become an incredibly active and robust area that lots of people know about and are talking about and are actively involved in.”
Commercial Special Features

Member Spotlight: Davide De Vido

Davide De Vido is an Italian lawyer with more than 20 years of experience in commercial litigation. In 2019, Davide has created FiDeAL® with the aim to import the tool of litigation funding in Italy and democratize access to justice for every individual, company or entity to pursue meritorious disputes. Prior to foundingFiDeAL, Davide was the General Counsel of a large Italian construction firm, and then of an international eyewear firm. Company name and description: FiDeAL® is the first Italian litigation finance consultancy company, and it is also specialized in managing and funding small/mid-sized disputes. FiDeAL® is focused on Italian litigation - disputes that involves an Italian party and/or Italian jurisdiction - but not limited to them. In fact, during its activity, FiDeAL® has supported several Clients, and their law firms, in finding the right funding solutions for international disputes (arbitration and judicial claims). Recently, FiDeAL® has enlarged its services range, offering litigation insurance consultancy and W&I's consultancy for M&A transactions too. FiDeAL® is also developing two more projects: (i) the creation of a business angel community dedicated to financing small/mid-sized disputes and (ii) a LegalTech project. Company website: Litigation Funding o Finanziamento della lite | FiDeAL Year Founded: 2019 Headquarters: via Venezia, 59 - 31020 San Vendemiano (TV), Italy Area of focus: FiDeAL® works indiscriminately with individual, company and other entities. It offers advice and support to find finance or insurance solutions for a wide range of disputes: Commercial litigation, Class and collective action lawsuits, Personal injuries, Intellectual property, Environmental litigation, Antitrust and competition law, Construction dispute, Real estate litigation, securities litigation, Enforcement award and so on. Member quote: "Funders often say that litigation funding is useful for pursuing David vs. Goliath disputes. Who better than me (Davide) can recognize the value of this statement?" "With the UN's 2030 Agenda, litigation funding can ensure access to justice for all and can contribute to achieving Goal 16 for more sustainable justice."
Announcements Commercial Deals

LitFin Capital, in cooperation with WOOD & Company, launched a unique fund of qualified investors

LitFin Capital, a Prague-based litigation finance provider and one of the largest players in Europe, has enriched the investment landscape by launching one of the first qualified investor funds for litigation finance in continental Europe. Developed in partnership with WOOD & Company, a major Czech investment firm, this innovative fund presents a unique opportunity for investors seeking uncorrelated market returns. "We're extremely thrilled that after significant preparation time, as this is still a new asset class, we came to the successful setting up of the fund," says Ondrej Tylecek, partner at LitFin overseeing the investments of the group. Primarily focused on investing in significant LitFin cases, the fund aims to deliver an impressive net return of around 15% per annum. "This venture marks a strategic move by LitFin to take advantage of the lack of competitors in this space and introduce a distinctive investment path that remains resilient and independent of traditional financial market fluctuations," adds Tylecek. By entering this territory of regulated investment funds, LitFin aims to provide investors with an exclusive opportunity to diversify their portfolios and tap into a niche market with significant potential. Partnering with WOOD & Company, known for its prestige and expertise in investment management, further solidifies the fund's credibility and promise of delivering exceptional results. The creation of LitFin SICAV not only represents a milestone for LitFin Capital, but also allows to offer litigation finance participation to smaller investors seeking strategic opportunities in alternative assets. Investors are encouraged to take advantage of this unprecedented opportunity to participate in a venture that promises both financial rewards and new diversification possibilities. The development of litigation finance in the European market is very promising over the next few years, thanks to the growing understanding of its benefits and the maturing legal environment inspired by common law countries. This shift is likely to widen the range of cases eligible for funding and boost the volume of capital invested.
Announcements Commercial Deals Funder's Corner

LitFin Capital, in cooperation with WOOD & Company, launched a unique fund of qualified investors

By Ondrej Tylecek |
LitFin Capital, a Prague-based litigation finance provider and one of the largest players in Europe, has enriched the investment landscape by launching one of the first qualified investor funds for litigation finance in continental Europe. Developed in partnership with WOOD & Company, a major Czech investment firm, this innovative fund presents a unique opportunity for investors seeking uncorrelated market returns. "We're extremely thrilled that after significant preparation time, as this is still a new asset class, we came to the successful setting up of the fund," says Ondrej Tylecek, partner at LitFin overseeing the investments of the group. Primarily focused on investing in significant LitFin cases, the fund aims to deliver an impressive net return of around 15% per annum. "This venture marks a strategic move by LitFin to take advantage of the lack of competitors in this space and introduce a distinctive investment path that remains resilient and independent of traditional financial market fluctuations," adds Tylecek. By entering this territory of regulated investment funds, LitFin aims to provide investors with an exclusive opportunity to diversify their portfolios and tap into a niche market with significant potential. Partnering with WOOD & Company, known for its prestige and expertise in investment management, further solidifies the fund's credibility and promise of delivering exceptional results. The creation of LitFin SICAV not only represents a milestone for LitFin Capital, but also allows to offer litigation finance participation to smaller investors seeking strategic opportunities in alternative assets. Investors are encouraged to take advantage of this unprecedented opportunity to participate in a venture that promises both financial rewards and new diversification possibilities. The development of litigation finance in the European market is very promising over the next few years, thanks to the growing understanding of its benefits and the maturing legal environment inspired by common law countries. This shift is likely to widen the range of cases eligible for funding and boost the volume of capital invested.
Community Spotlights
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Member Spotlight: Robert Martorana

Robert Martorana is a NYS licensed attorney who has 10 years of experience in the litigation finance industry.  Rob worked for Burford Capital and Stifel prior to launching REMO Litigation Finance in January of 2023. While at both companies he worked on single case and portfolio deals ranging in value from $5m to $200m.  Having been on the funder side for many years learning their underwriting criteria and process, he is uniquely positioned to represent clients seeking funding. Company Name and Description:   REMO Litigation Finance provides advisory services for law firms and companies seeking funding. REMO provides concierge level service throughout the process, from objective setting to negotiating deal terms. Company Website: www.RemoLitFin.com Year Founded:  2023 Headquarters:  Haddonfield, NJ Area of Focus:  REMO provides advisory services to a broad range of clientele, from mass tort lawyers obtaining portfolio funding, to AmLaw 100 firms seeking funding for complex commercial litigation.  We make the process of obtaining funding transparent, and we do that through frequent and clear communication with our clients. Member Quote: Anyone who thinks that litigation funding creates frivolous litigation has never tried to get funding.
Case Developments Commercial

Panthera Resources Announces Issue of Notice of Dispute with India

Litigation funders often highlight the mining industry as a sector that can benefit greatly from the use of third-party dispute financing, with conflicts over project rights and investment treaty obligations being a regular occurrence. Another example of such a use case has reappeared in the new year, with Panthera Resources announcing a step forward in their funded dispute with India.   An announcement from Panthera Resources reveals that the company’s subsidiary, Indo Gold Pty Ltd (IGPL) has issued a formal Notice of Dispute (NoD) to the Republic of India over the company’s legal rights to the Bhukia Project. The dispute focuses on allegations that the Indian government breached its obligations ‘under the 1999 Agreement between the Government of Australia and the Government of the Republic of India on the Promotion and Protection of Investments.’ IGPL is seeking damages from India, stating that the company ‘is entitled to fair and equitable compensation, not merely reimbursement of expenditures.’ The announcement explains that now the NoD has been delivered, if there is no ‘meaningful correspondence’ or ‘amicable settlement’ with India, then IGPL will pursue arbitration proceedings against the government. The company expects any notice of arbitration to be delivered within the first quarter of 2024, after which ‘an arbitral tribunal is to be constituted within two months of delivery.’ As LFJ previously reported in August 2023, Panthera Resources has already secured litigation funding through LCM Funding, a subsidiary of Litigation Capital Management. The funding agreement provides for up to $13.6 million in finance to support the dispute through to a conclusion.
Commercial Regulatory Issues

Former CAT Chair says Government’s PACCAR Solution is ‘Far Too Narrow’

The UK government’s efforts to provide a legislative solution to the Supreme Court’s ruling in PACCAR, namely through an amendment to the Digital Markets, Competition and Consumers Bill (DMCC), continue to receive criticism from senior figures in the legal industry. The latest of these critiques comes from the former chair of the Competition Appeal Tribunal (CAT), who argues that the government must go further to protect the UK’s ‘reputation as a global legal centre.’ In a recent opinion piece on The Law Society Gazette, Lord Carlile of Berriew, Alex Carlile KC argues that the government’s current plans to offer a legislative fix to the PACCAR ruling ‘will not solve the problem.’ He explains that ‘the role of litigation funding is now under serious threat’ in the current environment, and that without sufficient government action, the Supreme Court’s judgement will ‘give deep-pocketed defendants fresh means of challenging claims to avoid their liabilities, making cases more costly to bring and less viable for third-party funders to back.’ Lord Carlile states that the central issue with the proposed amendment is that ‘it is far too narrow.’ He goes on to explain that it is too limited in scope to stop challenges from defendants over the enforceability of funding agreements in the CAT, and it fails to offer a solution for the majority of funded cases, which take place outside the CAT. Lord Carlile goes on to suggest that the government should further amend the DMCC bill, ‘to bring it in line with its initial policy intent to allow funding and to reflect the long-held position of the courts and government.’