The ECU Group Plc recently lost a claim against HSBC Bank, alleging that HSBC was culpable for front running and manipulation of international markets. In a decision that has implications for the funding sector, Therium has been held liable for costs. One Essex Court reports that Therium has funded a wide variety of ECU claims. Yet the HSBC claims were successfully defended, and Mrs Justice Moulder handed down judgment in a third-party costs application made by HSBC Bank Plc, leaving Therium holding the bag.Therium was held liable for all costs incurred by HSBC from the date when costs were incurred, rather than the execution date of the funding agreement, which was a later date and would have resulted in less costs to cover. Click here to read more about the case.
Now more than ever, in-house legal and finance professionals can collaborate to build solid affirmative recovery teams. The notion of siloed teams is an obsolete economic framework when it comes to litigation finance, according to new research published by Burford Capital.Burford Capital suggests that the stereotypical barriers between corporate litigation and finance teams should be dismantled as part of firm wide innovation. The notion that litigation teams incrementally increase firm expenses should be considered antiquated thinking. Even more, Burford suggests that new revenue channels are available to teams that construct aggressive affirmative recovery systems between legal and finance teams. Click here to read more about Burford's insights on this matter.
Legal Bay, The Lawsuit Settlement Funding Company, announced today that on June 15, 2022, its recent New Jersey State Court lawsuit filing against Mustang Legal Funding and its principals has been removed to the United States District Court for the District of New Jersey, Newark Vicinage, by the Mustang Entities, James Beltz, and Kevin Cavanaugh. The case now bears the following docket name: Legal Bay LLC v. Mustang Funding LLC, et al., No. 22-cv-3941 (ES) (JBC). The matter has been assigned to District Judge Esther Salas and Magistrate Judge James B. Clark, III. Previously, Legal Bay had notified its business contacts of the suit's filing, but had not made any public statements. With the removal of Legal-Bay's action to Federal Court, Legal Bay believes that the time is now appropriate to disseminate a notice to the ligation funding industry about its lawsuit and its importance to the industry's direction and commercial standards. Chris Janish, CEO of Legal Bay, commented, "Our complaint against the Mustang entities and their principals is a public record at this point, and we will let the legal process play out in Federal Court. Legal Bay's purpose in pursuing this matter is not only to protect its own interests from the Mustang defendants' misconduct, but to send a message that their documented, abhorrent behavior is not limited to the Mustang defendants, but commonplace in the litigation and pre-settlement funding industry. These issues will hopefully, at long last, be formally addressed by Legal Bay's lawsuit." Legal Bay has asked the court to dissolve its joint venture with the Mustang entities and is asserting other equitable and legal claims against the Mustang defendants. Legal Bay has reason to believe that, in addition to the equitable relief it is entitled to, its monetary damages are substantial. The exact amount of those damages is not yet fully calculable, but will be determined in due course during the litigation. Janish added: "While we had hoped to avoid the need for a lawsuit, our hands were tied by Mustang's continuing misconduct. Legal Bay looks forward to continuing their work with the industry's leaders and regulators in order to find better ways to protect members engaged in formal business relationships from deceptive and anti-competitive business practices in the industry, as well as initiatives for better disclosures to consumers where previous legislation has fallen short." Legal Bay is represented by Fox Rothschild LLP within its Morristown, New Jersey office, and Timothy P. Kebbe, Esq. of Hawthorne, New York. Mustang and the other defendants are represented by Kasowitz, Benson, Torres, & Friedman LLP, of Manhattan.
The Australian office of Omni Bridgeway has organized funding vehicles for land owners impacted by WestConnex roadway construction in Sydney. Omni says they have partnered with Dentons Australia to puruse a claim against WestConnex, which erected a 33 kilometer underground motorway. The blueprint was designed to connect New South Wales avenues, and was undertaken in conjunction with the Australian government. Litigation funding agreements will be offered to help repair damage from tunnel vibration, along with water and soil damage from the construction.You can find more information at https://WestConneXClassAction.com.au.
Jaeson Birnbaum, suspected owner of Cash4Cases Inc. has been found guilty of a felony in New York State for his role in a litigation funding fraud scheme. Mr. Birnbaum stands to be expelled from the New York State Bar Association for funding crimes. The Postman 24 reports that Mr. Birnbaum conned investors out of funds to run his Cash4Cases Inc. scheme. In September, Birnbaum pleaded guilty to securities fraud. On June 21, a New York appeals court confirmed recommendations for Birnbaum being disbarred. You can read more about the litigation funding scam here.
Augusta Ventures has published new research into pitfalls associated with self funding cross border dispute resolution. Augusta suggests that international litigation should be supported by third party funding rather than self funding practices that may jeopardize balance sheets.Augusta says that third party funding can foster conditions that promote expeditious international dispute resolutions. Driving better outcomes with legal costs off balance sheet is becoming a priority for large, international companies. Furthermore, Augusta says funders can help clients with solutions associated with asset recovery. Click here to read more about Augusta's findings.
An Australian Federal Court has ruled that litigation finance agreements do not fall under rules regulating managed investment schemes under the Corporations Act of 2001. Many litigation finance scholars are hailing the decision as a win for the industry. According to the ruling, the characterization of litigation funding arrangements as managed investment schemes, "is a case of placing a square peg into a round hole." Furthermore, the ruling suggests that for litigation funding to be considered responsible to the Corporations Act of 2001, the agreement would need to embody strict characteristics both in context and purpose. Click here to read more about the ruling in detail.
Actuarial Post reports that Insurance Europe has joined a group of associations lobbying European Union legislations to engage regulation to rein in unsavory third party litigation funding practices. According to the Actuarial Post, the profit model behind litigation finance can foster social inflation.The report suggests that third party funders are forced to consolidate profit models, sometimes at the disadvantage of claimants. Actuarial Post says that key advantages can emerge from the European Union enabling regulation to police third party funders.Other associations involved with the letter include Europe (A4E), AmCham EU, BUSINESSEUROPE, DIGITALEUROPE, DOT Europe, EFPIA, Eurochambres, EuroCommerce, European Banking Federation, European Justice Forum, Insurance Europe, MedTech Europe and the U.S. Chamber Institute for Legal Reform.
Mark Wells has been named the Global Head of Portfolio Management at Omni Bridgeway. From Omni's London Office, Mr. Wells will be tasked with expanding the firm’s capital management structures, while also leading the financial structures team. Mr. Wells comes to Omni from Calunius Capital. Previously, Mr. Wells spent two decades in derivatives trading at JP Morgan Chase and Toronto Dominion. Mr. Wells says that he plans to help lead Omni Bridgeway's continued growth, particularly in the EMEA region.
Sign Up for LFJ’s Weekly Newsletter & Daily Alerts
Thank you for signing up for the LFJ Newsletter!
Stay informed on the latest news and events taking place in the global legal funding space.
You'll now receive the latest global legal funding news, insights, and analysis straight to your inbox.
Please check your email to confirm your subscription.
By completing this form, you agree to allow LFJ to communicate with you per the terms of our Privacy Policy. Your personal information will never be shared or sold to 3rd parties.
Access Premium Content
LFJ members, please log in below to access premium content.
