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Commercial

Collective Action Against James Hardie Proceeds

A funded class-action against the group of Australian building companies known as James Hardie is about to begin. Leaks in 376 buildings led to homeowners seeking damages of roughly AUD $220 million. Harbour Litigation Funding provided support for the case early on. Stuff New Zealand details that the issue revolves around a cladding system called “Harditex.” Claimants assert that the cladding is defective, and that James Hardie knew or should reasonably have known about the defects. Instead, they continued selling and installing the product—leaving residents dealing with massive leaks, multiple repairs, and even illnesses after being forced to remain in leaky homes. The claim was originally filed in 2015. The case is expected to involve dozens of witnesses and multiple international experts to prove that the cladding was defective. In all likelihood, the case would not have continued if not for aid from litigation funders.
Commercial

Judge Agrees to Oral Hearing in Possible Revival of BHP Case

BHP is, by market value, the largest mining company in the world. In 2015, the Fundao dam, owned jointly by BHP and Vale (Samarco) collapsed—killing 19 people and contaminating the Doca river, reaching all the way to the Atlantic Ocean over 400 miles away. Reuters reports that the Court of Appeal ruled that the case could not proceed in English courts. The Appeals court agreed with the lower court that the case was, in fact, an abuse of process, as it amounted to a claim of reparations. This led to 200,000 disappointed claimants. Judge Underhill will hear oral arguments that may overturn the Court of Appeal ruling, and perhaps breathe new life back into the $6.95 billion case. Ultimately, the case could be instrumental in establishing whether companies with global reach should be held liable for the actions of their subsidiaries around the world.
Commercial

Battle Over Zhunus Judgement Continues

A $300 million judgment known in legal circles as “The Zhunus Judgement” is still being scrutinized by the parties involved. Harbour Litigation Funding brought several charges against Kazakhstan Kagazy JSC with relation to the judgment. LittletonChambers details that Rupert D’Cruz of Littleton Chambers defended KK JSC against claims made by Harbour. Issues in the case included the execution of multiple versions of the Funding Agreement meant to increase Harbour’s share, an accusation of ‘unjust enrichment,’ and whether the new versions of the agreement were created and executed with proper authority. Justice Moulder, in a 72-page judgment, ruled in favor of KK JSC late last week.
Announcements Commercial

Apex Litigation Finance are recruiting for growth

Less than 18 months since launching the company, Apex Litigation Finance has committed to a growth strategy that is creating career opportunities within its team. Following the company’s success in attracting applications and achieving positive outcomes for clients, a significant increase in case numbers is emerging. With that growth comes a need to bring further talented individuals into the business. CEO Maurice Power says: “We are about to see a new injection of capital into the business, with significant additional funding for cases. We also recently signed a contract to provide commercial litigation funding to a scheme generating 200-plus cases per annum. This will make Apex of one the highest volume providers of litigation funding solutions in the UK. “With the increase in case volume in mind, we are looking to grow our team. It’s a superb opportunity for anyone with an interest in a career in litigation funding to join Apex in our journey. It’s a fresh and exciting place to work, especially with our innovative use of artificial intelligence breaking new ground.” The company is taking a flexible approach to its initial recruitment drive. Rather than advertising specific roles at this time, it is keen to hear from interested individuals from across various disciplines including legal, insolvency, litigation funding, AI development and business development. Specific litigation funding experience is not essential, and Apex says it will look at an individual’s skill set and identify those who can make a contribution to their success. Interested candidates are invited to contact Apex via enquiries@apexlitigationfinance.com by sending a current cv and details of why they would be ideal for Apex. About Apex Litigation Funding: Apex Litigation Finance Limited brings together experts from the legal and finance sectors to provide third party litigation funding to litigants (corporates, liquidators and individuals) who are unable to pursue a claim due to the prohibitive cost of litigation. Although the claim may have merits, uncertainty over the total costs and the potential risk of being ordered to pay the defendant’s cost, should they lose the claim, prohibits access to justice for many claimants.  Our process is augmented by artificial intelligence systems to assess risk. As a professional litigation funder, Apex will make available funds to pay legal and other costs associated with a claim in return for an agreed share of any successful return. If there is no recovery, or if the claim is lost, there is nothing to repay. For details, please see www.apexlitigation.com
Announcements Commercial

Delta Capital Partners Management Hires Jonathan Sablone as Managing Director and Global Director of Originations

Delta Capital Partners Management LLC, a global private equity firm specializing in litigation and legal finance, has announced the addition of Jonathan Sablone to the firm as Managing Director and Global Director of Originations. Mr. Sablone is based in Boston and will be leading the firm's Boston presence and overseeing all aspects of deal originations for Delta. Prior to joining Delta, Mr. Sablone served as a Partner at DLA Piper where he created and co-chaired the firm's Private Fund Dispute Group. Mr. Sablone's law practice focused on commercial and financial services litigation involving investment funds and disputes between or among alternative asset funds and investors in those funds. Prior to DLA Piper, Mr. Sablone served as a Partner and Practice Group Co-Chair for Nixon Peabody's Complex Commercial Disputes Group and also led the firm's Private Fund Disputes practice and chaired the eDiscovery and Digital Evidence practice, both of which he created during his tenure. Mr. Sablone has over 25 years of commercial litigation experience, during which time he has represented a cross-section of the funds industry, including offshore liquidators, managers, limited partners, and institutional investors. Additionally, Mr. Sablone has represented companies in the technology, pharmaceutical, manufacturing, and financial services sectors. Mr. Sablone has been ranked in Chambers, Best Lawyers and Superlawyers, selected for the "40 Under 40" award in the Boston Business Journal, and speaks and writes regularly on hedge funds and private equity funds, litigation, due diligence, compliance, and regulatory issues. Christopher DeLise, Delta's Founder, CEO and Co-CIO, stated, "Delta is pleased to welcome Jon as a Managing Director and the firm's Global Director of Originations, and to have him lead Delta's Boston presence. Jon's tremendous experience in commercial litigation and client relationship management, as well as the extensive recognition he has received for his work in the legal community, will enable him to contribute greatly to Delta's global originations. The launch of several new business ventures for Delta this year makes this an exciting time for Delta's Boston expansion and we are proud to be adding such an esteemed legal professional to Delta's team in order to continue the firm's worldwide growth and development as a funder of choice for sophisticated litigation and legal finance solutions across all markets and verticals." About Delta
Delta Capital Partners Management LLC is a global private equity firm specializing in litigation and legal finance, judgment enforcement, asset recovery, and related strategies. Delta provides capital and related services to individuals, businesses, private investment funds, law firms and other professional service firms across the world that seek to hedge their financial exposure, reduce legal spending, enhance the probability of a successful and timely resolution of claims, and maximize the effectiveness of their core businesses.
Announcements Commercial

Deminor supports businesses in France to recover losses suffered due to COVID-19 lockdown measures

Deminor is pleased to announce that it will be joining forces with Lincoln Avocats Conseil, a Paris-based law firm, to support business owners in France in their pursuit of indemnification from insurance companies for losses suffered due to lockdown measures. Due to the COVID-19 epidemic, the French authorities ordered the closure of non-essential businesses (such as restaurants, bars, and hotels) from 15 March 2020 to 15 June 2020. Then, the French authorities imposed a further partial closure of non-essential businesses from 16 October 2020. This became a full closure from 29 October 2020 onwards in order to combat the second wave of COVID-19 infections. This second period of forced closure remains in force and it is expected to end in June 2021. Businesses which saw their activities interrupted because of these lockdown measures have suffered a significant loss of revenue. This loss of revenue is often covered by professional risk insurance taken out by business owners. However, insurance companies have so far largely refused to indemnify their policy holders (click here for more information). Based on external legal advice received by Deminor, business owners may be entitled to indemnification pursuant to their business interruption insurance. Therefore, we will be teaming up with Lincoln Avocats Conseil to support businesses in the pursuit of their indemnification claims against selected insurance companies. Deminor will provide third-party funding to eligible businesses to claim business interruption indemnification. Deminor will pay Lincoln’s fees and all legal expenses related to the court proceedings, making it possible for businesses to claim compensation on a ‘no cure, no pay’ basis. Deminor will only be entitled to a return if the claim is successful. To learn more about our ‘no cure, no pay’ funding solution for business interruption claims, please read our Q&A (only available in French). About Lincoln Avocats Conseil Lincoln Avocats Conseil is a Paris-based law firm specialising in insurance law and dispute resolution. Me Guillaume Aksil, a partner at the firm, has successfully litigated business interruption claims against AXA France and other insurance companies. About Deminor Established in 1991, Deminor is a litigation funder with expertise and a proven track record in collective recovery actions. Deminor currently represents c. 330 victims of the truck cartel, c. 8,000 shareholders of Fortis/Ageas, and c. 5,000 investors impacted by the Madoff fraud. We have built an unmatched track record over the past 25 years. We have been able to obtain an average recovery ratio of 42.6% for our clients, and we have achieved a positive outcome in 81% of our concluded recovery cases.
Announcements Commercial

Sundance Resources Secures Litigation Funding from Burford Capital

Sundance Resources Ltd (“Sundance” or the “Company”) is pleased to announce it has signed a binding Capital Provision Agreement (“CPA”) with Burford Asia Investments Pte. Ltd. (“Burford”), an affiliate of Burford Capital Limited, the world's leading global finance and asset management business focused on law. Under the CPA, Burford will provide Sundance with non-recourse funding to cover legal fees and other costs of arbitration against the Government of the Republic of Congo and, if required, the Government of Cameroon. The terms of the CPA need to remain commercial in confidence. In parallel with the negotiation of these funding agreements, Sundance has progressed its claim against Congo, which is now the subject of active international arbitration proceedings in London under the rules of the International Chamber of Commerce. In these proceedings, Sundance's subsidiary Congo Iron SA is claiming damages of USD 8.76 billion plus other relief. Sundance Resources CEO Giulio Casello commented: “Whilst it is unfortunate that we have had to resort to litigation to protect the rights of our shareholders, we are confident that, with this funding from Burford and the legal support of magic circle firm Clifford Chance, we will deliver justice and the best possible return for our shareholders. Arbitrations of this kind can take several years to be completed and we thank shareholders for their patience.”
Commercial

Leveling the Playing Field with Litigation Finance

It is well understood that Litigation Finance offers plaintiffs a means to pay legal teams, experts, researchers, and others who can make or break a legal matter. But what else does third-party litigation finance accomplish? Hedgeweek explains that when third-party legal funding is used by plaintiffs, its presence can change the way that case strategies are formulated by the defense. In a David v Goliath-style case, a well-monied defendant may choose to drag a case out until a plaintiff of low means runs out of funds. Litigation funding prevents that scenario, by creating a level ground for a more fair legal proceeding. Ultimately, litigation funding is a net gain for the community at large since it holds corporations responsible when they’re not meeting environmental standards. This is true regardless of jurisdiction—though the venue in which a case is tried can have a significant impact on how litigation funding is viewed. Disclosure and transparency, security for costs, and even the funding agreements themselves may have different applicable laws depending on where a case is being heard.   For investors, returns from a legal finance investment can be very high. At the same time, time frames are unpredictable and there’s always the risk of losing a case—and therefore one's entire investment. Despite these risks, Litigation Finance remains a profitable and socially responsible investment.
Commercial

Litigation Funding a Decade From Now—What Can We Expect?

Litigation Finance has changed dramatically in the last decade-plus. Boosted by a global health and financial crisis, third-party legal funding has risen to the occasion with spectacular adaptability. But as regulations evolve and societal understanding of the practice grows—how will that impact the industry in the years to come? Validity Finance shares several viewpoints on what we can expect in the next decade of Litigation Finance. Managing Directors of Berkeley Research Group suggest that law firms will increasingly have their own funding arms. These are likely to include single case funding as well as portfolio arrangements. It’s likely that future cases will inspire new regulations that will impact the industry in several jurisdictions. Erika Levin of Fox Rothschild suggests that advancements in legal technology and expanded use of AI will lead to greater sophistication in the industry. She anticipates increased uniformity across jurisdictions regarding disclosure, fee-sharing, conflicts, and security for costs. What about case size? As more people discover the benefits of third-party funding, and with boutique funding entities popping up all over the globe—cases that were once considered too small to fund are now receiving interest from funders. Lucian Pera of Adams and Reese expects that trend to continue. No doubt, smaller cases being funded could lead to an explosion of new requests for funding. Validity Finance Investment Manager William Marra anticipates even more widespread use of legal funding in the coming years. While a decade ago, most people hadn’t heard of the practice—ten years from now it will be an expected feature of the legal system. Marra expects that even large firms still clinging to the hourly fee model are likely to make more use of legal funding. Will litigation funding gain wider acceptance, or be subjected to increased regulations in the next decade? The correct answer is likely a combination of both.