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Commercial

Private Funding of Legal Services Act Introduced in The Cayman Islands  

Even though much of the world has abandoned outdated maintenance and champerty laws, the Cayman Islands is reticent to let these common-law standards go. This is about to change, with the introduction of the 2020 Private Funding of Legal Services Act. Mondaq details that restrictions based on champerty and maintenance laws are now abolished. Attorneys may now enter into contingency fees without required court approval—with a few common-sense restrictions. This alone is a big step forward. Even bigger is that the new law makes Litigation Funding legal. In order to use third-party legal funding, some specific conditions will need to be met. Funding agreements must always be in writing, and the client must be making a fully informed decision. Funders are to be remunerated with costs based on the funders anticipated spending, or an agreed-upon percentage of any recovery. Also, contingency fees cannot impact costs between parties, according to the provisions of the act. Contingency fees and attorney success fees are similarly restricted and clarified by the new act. Fees cannot be more than the normal attorney fees or more than 40% of the total monetary award. Contingency fee agreements must also be in writing and delivered to the client by their legal counsel on the day that the agreement is executed. It’s important to note that the act’s contingency fee provisions do not apply to criminal cases.
Commercial

Investors Consider Options as UK Investment Fraud Grows

What is the best way to address fraud once it’s been discovered? Many professionals would say that a civil action is the most effective way to recoup losses and bring fraudsters to justice. Litigation funding can play a pivotal role in this process. Pinsent Masons explains that in a one-year span between September 2019-September 2020, there was a 28% increase in reports of investment fraud. This represents more than 17,000 instances of reported fraud, coming to more than GBP 650MM in losses for investors. There are limits on what law enforcement like police and regulatory authorities can do in cases of fraud. Police may be able to investigate a case and hand it off to prosecutors, but this is unlikely to help defrauded parties recoup losses. Civil proceedings might also be a viable choice for some. Civil fraud claims also require a lower standard of proof, which could mean that civil fraud claims are easier to prove than criminal claims. By suing those who committed fraud, one increases the chances of recovering what was lost. Funding civil actions is often best done by Litigation Finance professionals. Third-party litigation funding is an effective way to secure the resources needed to pursue a case. Often, victims of investment fraud have lost significant capital and may not be in a position to fund a long legal action. Consulting litigation funders has other advantages, like having the case vetted and evaluated for viability. Experienced funders can help with identifying class members, logistics, and even strategy. It isn’t always clear whether it makes more sense to pursue investment fraud as an individual or as part of a class action. Getting the facts before deciding is essential.
Announcements Consumer

Tribeca Capital Group, LLC Announces Expansion for New Year 2021 Mass Tort Initiative

Litigation Funding leader Tribeca Capital Group, LLC, is pleased to announce its New Year 2021 Mass Tort initiative to offer financial relief to victims of defective surgical implants, unsafe medications, or institutions that protected sexual predators. These mass torts include the over-the-counter heartburn medication Zantac, medical device placement surgeries for hernia mesh and inferior vena cava (IVC) filters, and sexual abuse by leaders and others associated with the Boy Scouts of America organization. Tribeca has formed a dedicated team to assist victims who are asserting claims against the corporations and groups in whom they placed their trust but ended up wreaking havoc in their lives. According to Donadio, each year tens of thousands of people assert claims in mass tort litigation and class action lawsuits. Those matters often take two to three years before the parties reach a settlement, and even longer for the class members to be identified, claims filed and approved, and payment made. "We intend to offer financial assistance to as many claimants as possible now while they're waiting for their claims to wind through litigation," explains Tribeca founder Rory Donadio. "2020 was a horrendous year for so many. We want to do our part to help some of the folks who have been hit not only by the pandemic, but by these unscrupulous companies and organizations." Tribeca's founder also emphasizes that these advances are not loans and are not designed to be repaid by the claimant. The litigation funding company takes its share from the eventual award. Even If the claimant's award is less than the advance, the claimant owes Tribeca nothing. Tribeca is fully prepared to handle the influx of new clients seeking financial assistance. The process is simple. Mass tort claimants can apply directly from the Tribeca website at tribecalawsuitloans.com or call (866) 388-2288. Donadio assures that Tribeca can process applications and make a funding offer within days. "Tribeca is thrilled to have an opportunity to help ease the burdens of people fighting for justice in these cases. Since we opened our doors, we have served more than twenty-five thousand clients by financing their litigation efforts and allowing them to receive a portion of their just due when they need it rather than having to wait the months and years that mass tort litigation often takes," says Donadio. If you are a claimant in one of these cases or a plaintiff in another type of personal-injury matter, a five-minute application or phone call can start the process for you. Call Tribeca Capital Group, LLC at (866) 388-2288 or visit our website at tribecalawsuitloans.com.
Commercial

Joint Committee Report of Australian Parliament on Class Actions

Australia’s rise in class actions has caused alarm in many circles. In addition to plaintiffs, big business, government, and legal professionals all have a stake in how class actions are funded, managed, and adjudicated.  Lexology details that a Joint Parliamentary Committee on Corporations and Financial Services was formed to investigate the effectiveness of the current levels of regulation in the industry. The committee was formed in response to concerns from businesses and various class members that fair and equitable outcomes are becoming more rare. Australia has already required licensing and specific disclosures with regard to funders and funding agreements. The committee has suggested several more improvements to oversight—some of which will not please funders. Among the proposed changes are indemnity for plaintiffs in the event of an adverse costs order. Also, funding agreements would require court approval in order to be enforceable, and the courts may reject all or part of any agreement. It’s also suggested that Federal Courts be able to appoint an assessor to vet funding fees, and that courts be empowered to order that litigation funders pay costs in some instances. The Federal Government should, according to the JPC, determine a minimum return on class action proceeds and offer a guaranteed minimum amount that would go to class members. Shareholder class actions have been of particular concern in Australia, which has prompted changes to the Corporations Act with regard to continuous disclosure. A 2020 amendment states that liability can only be shown if the lack of disclosure was knowing, reckless, or negligent—and materially impacted the security’s price or value. This was to be a temporary amendment, spurred by COVID. But the JPC has suggested that it be made permanent. Adopting these laws would ostensibly curb meritless class actions—if indeed that is what is happening.
Consumer

Girardi’s Former Clients Recount Regrets, Abused Trust

Thomas Girardi was a famous trial lawyer when he assured devastated clients that he would help them. One such client, Kathy Ruigomez, took the celebrity attorney at his word based on his affectation, and his reputation as illustrated in the film Erin Brockovich. Law 360 explains that Ruigomez’s son had been badly injured in a gas explosion, and Girardi assured her that the gas company would pay. Ultimately, the family claimed to have learned that while Girardi did win a settlement from PG&E, the money was spent by Girardi himself on personal matters. Lawsuits now allege that the firm Girardi Keese, and Thomas Girardi himself, have defrauded or stolen from families that were poisoned, earthquake survivors, elderly cancer patients, and a number of widows and orphans. Some say Girardi’s thieving was a not-very-well-kept secret in California’s legal community for many years. Girardi told potential clients that his many successes had led to jealousies and false claims about him. To a large extent, it worked. Last year, amidst a slew of lawsuits from consumer legal funders who had loaned him money and accused him of failing to repay, Girardi announced that he was broke. This led to an exodus of lawyers and staff from Girardi Keese, as well as a divorce from his reality-star wife, Erika Jayne. Next came a lawsuit from Edelson PC, co-counsel in a spate of cases against Boeing. Currently, Girardi’s brother has testified that the once-famed lawyer is mentally unfit to assist in his own defense. He’s even claimed that Girardi doesn’t remember where the missing monies went. Indeed, it’s not even clear how much money is missing. An interim trustee has announced that Girardi Keese will remain closed. Girardi has now been sued for fraud more than two dozen times. Meanwhile, Ruigomez and others like her are left feeling cheated and without protection or recourse. Some are especially galled to know that Girardi’s formal record is unblemished and he even has a Trial Lawyers Hall of Fame award.
Commercial

Class Action Against Woolworths Group Limited

Woolworths Group Limited is being accused of breaching disclosure obligations, including the 2001 Corporations Act, and engaging in deceptive or misleading conduct. That’s according to a recently filed class-action suit set in motion by Maurice Blackburn. The action has been slated for a hearing in February. Maurice Blackburn, a leading class action firm in Australia, details that the action covers investors who purchased Woolworths shares between August 2014 and May 2015. A central question in the case revolves around whether the company had a reasonable basis for its guidance to investors. Guidance was based on NPAT and NPAT Growth as performance metrics. If the company did not have a reasonable basis for its initial guidance, this may have led to inflated pricing for investors, who were then damaged by overpaying. The claim is being financed by International Litigation Funding Partners (ILFP). Omni Bridgeway, which had initially proposed funding for the class action, withdrew its funding proposal in 2018. In accordance with the funding agreement, ILFP will receive cost and expenses, plus a percentage of any recovery as detailed in Clause 10 of the agreement. Share prices dropped after announcements that WGL would not meet its stated goals. Investors were then informed that it would take a large investment of money and time to regain the sales momentum that had been lost. An earlier attempt at mediation led to the closure of additions to the class—which has now expired. As such, impacted persons who have not opted out of the action are able to register as class members at Maurice Blackburn’s website.
Commercial

QLD Energy Class Action Launched in Australian Federal Court is Biggest Energy Suit Ever

What’s being described as the biggest energy action in Australia’s history is now underway. A class action against two Queensland energy generators was filed in Federal Court on Wednesday. Allegations include manipulating the wholesale pricing system and artificially inflating energy bills for thousands of customers.

LCM, which is funding the action, explains that the claim is brought on behalf of registered Queensland customers who paid for electricity between Jan 2015 – Jan 2021. Class members are mainly residential customers, though over 1,600 businesses are registered as well. Only registered parties are eligible, and affected parties will have an opportunity to sign up if they so desire.

Because the action is being bankrolled by Australian funder LCM, interested class members can join the action at no charge.

Commercial

Cayman Island Welcomes Third-Party Legal Funding

The Cayman Islands is the latest territory to signal its embrace of Litigation Finance. Until 2017, champerty laws were still in force, and legal funding by third-parties was disallowed except in insolvency cases. That year, Harneys, a Cayman Islands law firm, received court approval for the practice. Omni Bridgeway explains that the passing of the Private Funding of Legal Services Act of 2021 is a clear welcome to third-party litigation funding. After the 2017 precedent, funders and clients alike were reticent to undertake funding agreements. Some speculate that the requirement of court approval for each case led investors to fear they could make funding agreements that are later rejected by courts. The new Act recognizes that funding agreements will be made by experienced professionals who are unlikely to need court guidance to develop contracts that are fair and reasonable. As such, it takes a hands-off approach unless there’s a reason for court involvement. Once the Act has taken effect, court approval will no longer be needed for third-party funding agreements. Arrangements must be in writing, and there are limits on the amounts that can be remitted to funders. These parameters apply to litigation and arbitration. This is big news in the Cayman Islands and elsewhere. The Cayman Islands is already a leading global financial hot spot. The new Act may lead to it becoming a destination for those shopping for the right jurisdiction in which to pursue litigation.
Announcements Commercial

Woodsford announces the promotion of Robin M. Davis to Chief Investment Officer, US

LONDON, NEW YORK 19 January 2021, Woodsford, the global provider of litigation financing solutions for businesses, individuals and law firms, has announced the promotion of Robin M. Davis to Chief Investment Officer, US. Robin, who joined Woodsford in October 2018 as Senior Investment Officer, was previously a partner at Radulescu LLP, a boutique patent litigation firm in New York City. Earlier in her career, Robin was an associate at Quinn Emanuel. “We recognized Robin’s potential when she joined the team just over two years ago and she has exceeded our expectations. Robin has played a key role in making Woodsford one of the leading funders of patent disputes in the US and will now drive and accelerate the continued growth of both our commercial litigation and IP-related practices across the US with her intellect and tenacity.” said Steven Friel, Woodsford’s CEO. Robin M. Davis commented, “I am thrilled to be stepping into the Chief Investment Officer role for Woodsford’s US business and beyond excited to shape and expand Woodsford’s sizeable footprint on this side of the Atlantic. With our outstanding team, Woodsford is both smart and creative— attributes that will serve us well as we continue to expand our success in the US market and further establish Woodsford as a leader in litigation finance.” About Woodsford Founded in 2010 and with a presence in London, Philadelphia, New York, San Francisco, Toronto, Singapore, Brisbane and Tel Aviv, Woodsford provides tailored litigation financing solutions for businesses, individuals, and law firms. This includes single case and portfolio litigation funding and arbitration funding and the funding of collective actions. Woodsford’s Executive team blends extensive business experience with world-class legal expertise. Woodsford is a founder member of both the International Legal Finance Association (ILFA) and the Association of Litigation Funders of England & Wales (ALF). Woodsford’s Chief Operating Officer, Jonathan Barnes, sits on the board of both organisations. Woodsford is continuing to recruit, seeking litigation lawyers to join as Investment Officers, and legal and other professionals to joins the Business Development team.