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Commercial

Therium Funds COVID-Related Claim Against Insurers

Therium, a global leader in Litigation Finance, is funding a legal action against insurers who failed to honor business interruption policies. The funding arrangement means that businesses may join the claim at no upfront cost. London Loves Business details that Provenio Litigation has filed the class action on behalf of policyholders seeking claims for COVID-related business interruption. While insurers asserted that business interruption policies didn’t apply to global occurrences, the UK Supreme Court disagreed. In January 2021, the court came down on the side of policyholders. Mark Goodwin of Provenio Litigation affirmed that the Supreme Court decision provides the necessary clarity to right the wrongs perpetrated by insurers.
Commercial

Woodford Investors Launch Legal Action to Recover Losses

Claims of direct losses and loss of opportunity are some of the accusations being levied regarding the collapse of the Woodford Equity Income Fund. The claim, led by RGL Management group, is against Link Fund Solutions as well as Hargreaves Lansdown Asset Management.

Daily Business Group details that there are several rival claims addressing losses linked to the failure of WEIF. If successful, RGL will get 25% of any award given. In other pending claims, Harcus Parker is taking 42% and Leigh Day is taking 30%.

Link Fund Solutions was the authorized corporate director of WEIF. According to RGL, this obligated Link to ensure that the fund complied with what investors had been told. Link was also responsible to ensure appropriate liquidity and diversity in the fund. RGL’s claims state that Link failed to manage and administer the fund appropriately. LBAs have been sent to Link and Hargreaves Lansdown—formally beginning the legal process.

Estimates suggest that at least 300,000 investors have been impacted by the collapse of WEIF. Anyone who invested in the fund can register their interest with RGL regardless of the investment amount. Because the case is using third-party litigation funding as well as ATE insurance, there is no fee required for claimants to participate unless and until the case is successful.

Commercial

Indonesian Farmers Win Montara Oil Spill Class Action

At last, at least 15,000 seaweed farmers in Indonesia will be compensated by the oil company responsible for one of Australia’s largest oil spills. West Timor farmers were devastated by the spill, which covered more than 240 kilometers of seaweed crops nearly 12 years ago. Harbour provided third-party funding for the action. The Sydney Morning Herald reports that the court ruled that the rig, PTTEP Australasia, failed to properly seal the well, creating a high risk of a blowout. Shortly after the spill, seaweed crops died. Justice David Yates stated that the courts could not ignore the obvious. Daniel Sanda, the lead plaintiff, has been a seaweed farmer for over 20 years. After traveling to Australia to testify, he explained that he had earned a comfortable living before the spill. After the spill, the seaweed turned white and then died—along with many fish. To date, his business has not fully recovered. PTTEP was ordered to pay Sanda for his losses for five years following the spill. If every farmer who joined the class action is eligible for remuneration, damages to the oil company could be in the millions. The case, backed by Harbour, is the first funded class action for cross-border pollution involving an Australian company with foreign claimants. Richard Ryan, principal lawyer, has stated that he is very proud of the win. Meanwhile, PTTEP maintains that the spill should not have caused enough concentrations to kill plants, and is considering its options for appeal.
Commercial

Founder of Homebuyers Fightback Starts CrowdJustice Fundraiser

A CrowdJustice appeal has been launched to cover legal fees, as homeowner John Gaskell seeks justice for a home beset by problems. While Gaskill points to issues involving heating and insulation, plumbing, and disability access compliance, the developer describes these issues as ‘cosmetic.’ Cambridge Independent explains that a report by HouseScan supports Gaskell’s claims that the home fell well short of existing regulations. Since September 2019, Gaskill has been at odds with the developer. What could have been addressed in weeks has now been a headache for the new homeowners for over 18 months. CrowdJustice is similar to other fundraising, sites except that, unlike IndieGoGo or GoFundMe, CrowdJustice focuses on funding legal expenses. Unlike third-party litigation funders, supporting an appeal on CrowdJustice does not net any reward for those who help fund claims. Gaskell is clear in saying that this case and his work with Homebuyers Fightback is not just about his specific situation. Indeed, there’s a public interest in addressing systemic failures of quality control in new home construction. Defending all home buyers from unscrupulous business practices and those who would evade liability is essential to ensure consumer confidence. Several MPs have backed Gaskell’s efforts to bring accountability to the industry and develop a home buyer’s charter.
Commercial

CEO of Taurus Capital Discusses Litigation Funding

Elad Smadja, CEO of litigation funder Taurus Capital, explains the basics of litigation funding. Taurus is actively pursuing investments in South Africa. Below are some key takeaways from the discussion, available in full on CNBC Africa: Q: What is Litigation Funding? A: It’s a fascinating asset class. It’s non-recourse funding provided to a plaintiff in order to pursue meritorious litigation in exchange for a percentage of the claim. When you have a plaintiff who wants to sue an entity of means, like a large commercial claim or a government institution, individuals don’t often have the means to file a claim. So they approach a litigation funder who can provide funds, and in return, the funder gets a portion of any proceeds resulting from the case. The downside is that if the claim is not successful, there’s no recourse for the funder. Q: It sounds very risky to me. A: And it is. It’s either a very large payout, or it’s zero. Obviously, we do a lot of due diligence work. We approach experts, vet the legal merits. There’s a lot of expense involved in doing that. Plus financial due diligence—to ensure that the defendant can make those payments at the end of the day. When investors come into a fund, one or two losses would be sad, but hopefully, the winners will make up for it. The winners should largely outperform the losers.  Q: Who are you pitching this to? A: This is not man-on-the-street pension money. If you have a low-risk appetite, this is not for you. Q: Sounds like bitcoin. A: *laughs* I don’t want to say it’s like Bitcoin. The main selling point is the non-correlated nature of this asset class. Ultimately, other investments rely on an underlying economic climate. Funding doesn’t.  Q: What kind of time frames? These things can drag, right? A: Yes, these things can take a long time. We bake that into our equation. Large-scale litigation can take a lot of turns, it can take years and years. So it’s similar to private equity in that regard.
Commercial

1818 Venture Capital Acquires Equity Stake in Level

Level, the family law litigation funder founded in 2017, has just sold an equity stake to 1818 Venture Capital. The GBP 20 million deal is also expected to refinance Level’s revolving credit line. Global Legal Post explains that the investment in Level will accelerate its growth and expansion in a way that increases access to justice and fairness. Family law clients are becoming increasingly aware of litigation funding as an option—especially when there’s a lack of funding for proper legal advice. Litigation funding is also helpful in many types of alternative dispute resolutions. Level funds family law cases, including high net-worth divorce cases. Founder and CEO of Level, George Williamson, stated that the investment by 1818 Venture Capital is a testament to the value of Level. This highly flexible funding line will allow Level to pursue opportunities and innovation.
Commercial

LCM Reports Rise in Funding Requests

As lockdown restrictions ease up around the globe, applications for legal funding are increasing. Litigation Capital Management claims that corporate clients are applying for funding at a 68% higher rate than the same period last year. Investors.com reports that current market conditions are creating an increased demand for legal financing. Much of this is related to restructuring and insolvency. This is good news for funders like LCM, which saw a loss of $1.4 million due to court delays. That interim loss is offset by a 15% surge in cash receipts to $10.6 million. LCM asserts that its investment portfolio is 100% balance sheet funded, and now boasts nearly $100 million invested; a nearly 200% increase from the same period during the prior year. 
Commercial

Legl Funding Raises GBP 5Million

Fully digital law firms are on the way, thanks to a new B2B SaaS platform developed by Legl, a London firm. Founded by Julia Salasky in 2019, Legl focuses on law operations.

Business Cloud details that Legl has received funding from angel investors as well as from Samaipata, and First Round Capital among others.

While much legal tech focuses on the actual practice of law, Legl is making advancements in improving the client experience. Startups like Legl are a sign that advancements in legal tech are here to stay.

Commercial

London Legal Merger Creates 15 Partner Firm

Competition between law firms in London just got a little more fierce. Byrne and Partners and PCB Litigation have merged—with Burford Capital’s blessing. The deal will go live next month when PCB Litigation moves into the Byrne and Partners offices. This will result in a firm led by 15 partners. Global Legal Post details that PCB entered into a deal last year with funding giant Burford Capital, which now holds a 32% stake in the firm. The new firm stated that there is an ambitious plan for growth, part of which will involve portfolio financing. The larger goal of the legal merger is to establish a platform to grow specific portions of the practice—including arbitration, corporate crime, and insolvency claims. The firm hopes to expand its reach in Asia, the Middle East, Russia, and elsewhere. The merger is being called a ‘landmark moment’ for the firms, both of which are considered dynamic leaders in the field.