Most lawyers know the feeling of a meritorious case moving along well, until it slows, and the funding to keep it going starts to run short. What is the next step when a client lacks the financial capability to continue? Is dropping the case to save funds a viable alternative, even if it means forgoing a potential award?Westfleet Advisors explains that if we take dropping cases off the table, there are two ways to address a lack of finances mid-litigation: altering the existing fee agreement with counsel or contracting with a litigation funder.Lawyers are not required to modify payment terms or to accept a contingency agreement mid-case. But it may be in their best interests to do so, if it means keeping a client with a viable case. If the client and lawyer agree that hourly rates are the best way to go, litigation financing via a third-party funder is a viable option. Outside funding can help clients meet financial obligations and relieve financial pressure on all sides. Funders are taking a risk when they enter into an agreement to provide financial relief to a plaintiff, as funding arrangements are contingency-based. Funders generally want to work with lawyers who are also assuming some risk. To that end, entering a case mid-litigation can be a positive for litigation funders. Working on a contingency basis means that case selection is vitally important, as is assessing the risk involved. Funders who enter cases in their later stages have access to more information which they can leverage to make optimal decisions. Ultimately, restructuring payments mid-case can be a benefit to all parties involved.
NEW YORK, July 20, 2020 /PRNewswire/ -- Bryant Park Capital ("BPC"), a leading middle-market investment bank, announced today that ProMed Capital Ventures, LLC ("ProMed" or the "Company"), a leading provider of financing to medical practices and facilities in the United States, has been sold to Experity Ventures, LLC, the parent company for several specialty finance and legal funding related services businesses in the United States, including Nexify Holdings, Medsolve Financial Group, and Thrivest Legal Funding, LLC dba Thrivest Link. The financial terms of the transaction were not disclosed.
BPC served as exclusive financial advisor to ProMed.
"Bryant Park Capital was instrumental in advising ProMed throughout the entire process, from comparing liquidity options for shareholders to managing a lengthy negotiation and closing process. The team at BPC provided thoughtful advice to ProMed throughout the process and helped us to achieve a successful outcome," said David Shulman, co-founder and CEO of ProMed. "We ended up finding the perfect partner for ProMed and its employees and clients, and we appreciate BPC's guidance and efforts in making this possible."
About ProMed
Founded in 2013, ProMed is a leading provider of medical receivable funding solutions. ProMed partners with healthcare providers, surgery centers and diagnostic and related facilities throughout the U.S. that provide patient care in exchange for medial liens (MLs) or medical letters of protection (MLOPs). The company predominately funds medical services for patients who have been injured as a result of a personal injury accident or event. Based in Las Vegas, Nevada, ProMed provides immediate reimbursement to doctors, surgeons, medical facilities and other professionals on behalf of patients while obtaining the healthcare provider's ML/MLOP against contingent future legal proceeds. Victims of personal injury can get access to the healthcare they need whether they have health insurance or not and medical providers can enhance their practices and serve this patient population while immediately improving cash flow and financial liquidity.
Experity Ventures, founded in 2019, is the parent company for Nexify Capital and Nexify Solutions, MedSolve Financial Group and Thrivest Legal Funding, LLC/dba Thrivest Link. Nexify Capital has entered into several strategic financing and operational partnerships with legal funding companies in the United States. Nexify Solutions develops and markets best-in-class enterprise and workflow software for the legal funding market place, which is designed to automate pre-settlement funding from intake to decision analytics, to servicing and payoff, while offering full accounting and reporting capabilities. Thrivest is a direct-to-market pre-settlement legal funding company that has successfully provided thousands of non-recourse advances to individuals with pending litigation, predominately in personal injury cases. Experity has offices in Philadelphia, New York, Nevada and Florida.
Bryant Park Capital is an investment bank providing M&A and corporate finance advisory services to emerging growth and middle-market public and private companies. BPC has deep expertise and a diversified, well-founded breadth of experience in a number of sectors, including business services. BPC has arranged lines of credit, raised growth equity and assisted in mergers and acquisitions for its clients in various industries. Our professionals have completed nearly 300 assignments representing an aggregate transaction value of over $35 billion.
In recent years, Litigation Finance has taken the world by storm. In many cases, third-party funding has helped ordinary citizens seek justice against much larger entities—even governments. Now there’s talk of Bangladesh adopting the practice. What could that mean for the country itself, and the wider region? Dhaka Tribune reports that while much of the developed world has established regulations or norms that guide the principles of litigation funding, Bangladesh has not. In England and Wales, for example, courts have allowed litigation funders to self-regulate. The same applies in Australia, though some are pushing for stronger rules. Both Singapore and Hong Kong have recently adopted laws to regulate and facilitate the use of third-party funding.As the Bangladeshi economy grows alongside an increase in foreign investment, it’s expected that third-party litigation funders will turn their attention to commercial arbitration there. Various advancements in Bangladeshi law have paved the way for the country to take a more active role in international arbitration. These include being a member of the Convention on the Recognition and Enforcement of Foreign Arbitration Awards, and the Convention on the Settlement of Investment Dispute. In 2001, they enacted the Arbitration Act, based on the UNCITRAL Model Law. These changes were needed to place Bangladesh in-step with competing countries.A lack of litigation funding may hold the country back from becoming a leader in arbitration. But if investment continues at its present rate, and laws continue to be favorable to the practice of Litigation Finance, Bangladesh could achieve its goal of becoming a leader in arbitration in Asia.
SYDNEY, 16 July 2020:Omni Bridgeway Limited (ASX:OBL), announces a new legal finance facility and an equity investment in an exciting new Japanese business providing Japanese clients with access to justice, without the associated costs and risks of pursuing their claims. These developments extend Omni Bridgeway’s global footprint and allows Japanese citizens to experience a service others have come to know and trust around the world. They also draw on Omni Bridgeway's expertise in providing innovative LegalTech solutions and enhance the company's portfolio of LegalTech investments. Established in April 2015 by two highly-experienced lawyers, Japan Legal Network Co., Ltd (Japan Legal Network) offers finance service similar to After The Event (ATE) insurance for clients pursuing legal actions in the corporate and other sectors (such as employees seeking reimbursement of un-paid wages). The ATE finance covers claimants’ legal expenses and is novel for Japan. Mr Yasufumi Minamitani, Representative Director and one of the founders of Japan Legal Network (previously an Attorney at leading Japanese law firm Nishimura Asahi and a business consultant at Boston Consulting Group), said: “Japanese claimants have traditionally not had an avenue to progress their legal rights while outsourcing the costs and risks to a finance institution at the same time. Japan Legal Network is the first service of this kind in Japan and provides clients with the capital and expertise to pursue their rights.” Co-founder of Japan Legal Network, Mr Nobuhisa Hayano (previously an Attorney at leading Japanese Law firm Oh-ebashi Partners) added: “Thanks to Omni Bridgeway’s investment, we are assisting thousands of claimants in recovering their damages and advocating for a fairer society in Japan.“ Mr. Seiichiro Wada, Representative Director of Monex Ventures, Inc. who is a co-investor with Omni Bridgeway, said: “Although consultation services to lawyers and other experts have become widespread and access to justice has become easier in Japan,there are many cases in which victims have to give up filing a lawsuit due to the financial burden. We also believe that there are many people and corporations who have a legal problem, but are unable to take action due to their customs or beliefs. We hope that the finance service provided by Japan Legal Network will become widespread and facilitate the use of legal professional services and that it will help people and corporations struggling with legal issues to resolve them.“ Tom Glasgow, Chief Investment Officer - Asia at Omni Bridgeway, said: “Omni Bridgeway has the largest team of its kind in Asia and the world and we are delighted to support Japan Legal Network and be at the forefront yet again of introducing new finance services to another part of Asia”. ABOUT OMNI BRIDGEWAY Omni Bridgeway is the global leader in dispute resolution finance, with expertise in civil and common law legal and recovery systems, and operations spanning Asia, Australia, Canada, Europe, the Middle East, the UK and the US. Omni Bridgeway offers dispute finance from case inception through to post-judgment enforcement and recovery. Since 1986 it has established a proud record of funding disputes and enforcement proceedings around the world. Omni Bridgeway is listed on the Australian Securities Exchange (ASX:OBL) and includes the leading dispute funders formerly known as IMF Bentham Limited, Bentham IMF and ROLAND ProzessFinanz. It also includes a joint venture with IFC (part of the World Bank Group).
Augusta, the UK’s largest funder of litigation by case volume today announces the appointment of Clara Segurola as Lead Economist.
Clara is a financial economist with more than 15 years of professional experience and joins from NERA Economic Consulting, where she was an Associate Director specialising in the assessment and quantification of damages in international disputes.
Recognised as one of the Most Highly Regarded Expert Witness Future Leaders in Who’s Who Legal Arbitration, Clara has a strong track record of valuations and economic quantum assessments in investment and commercial disputes across various industry sectors.
Louis Young, Managing Director of Augusta, said “Clara and her skill set are a key addition to our recently incepted Investment Valuation and Structuring team, which is headed up by Matt Pitchers, who joined us from Deloitte late last year. The IVS team is our response to demands from our law firm clients who are looking for deeper expertise and support from their funder. The services of this team are available at no cost to our law firm partners, and it makes the task of structuring finance solutions for their claims a much more collaborative process.”
Clara Segurola, Lead Economist at Augusta, said “I am very pleased to be joining Augusta Ventures. I’ve been impressed with Augusta’s reputation in the market and their forward-thinking approach to innovation. I look forward to making a significant impact and to helping law firms and their clients gain access to funding in the most efficient way”.
About Augusta
– Established in 2013, Augusta is the largest litigation and dispute funding institution in the UK by # cases.
– Augusta has offices in London, Sydney, Melbourne and Toronto.
Last week, it was determined that Bill 161 would be signed into law. This bill includes several amendments to the Class Proceedings Act of 2002, which details specific guidelines for class action lawsuits.Mondaq explains that the changes were proposed to make the courts move more swiftly while ensuring that justice is served. The most prominent changes include a centralized database of class action cases in Ontario—which had never been required before. Other new rules include prohibiting overlapping cases, limiting time periods for indemnity claims, and new requirements regarding appeals, certifications, notifications of class action members, and dismissal of dormant actions. The amendments also stipulate that when a party seeks settlement, the court must be given detailed information before approving.Litigation Finance did not escape notice in the amendments. Ontario now requires that funding agreements be subjected to court approval. Courts will require that agreements be reasonable and fair and that agreements with funders will not supersede the rights of plaintiffs to make decisions regarding their case. Funders must also be willing and able to cover adverse costs—which is to say that if a case loses and the winner’s court costs must be paid—the funder will be liable to cover it.After a funding arrangement is approved by the courts, defendants can obtain their costs from funders in accordance with the indemnity clause in the funding agreement. Defendants may also get security from the funder for costs in some circumstances. These include defendants who live and work outside of Ontario, those who may not have the ability to pay, or instances when a funder owes money to a defendant or plaintiff that remains outstanding.Courts will also require reports from those who distribute funds. These reports must be filed within 60 days of funds being disbursed. This is to ensure that plaintiffs, attorneys, and funders are all appropriately compensated.
The financial stressors caused by the global pandemic have touched nearly every industry. Legal firms are finding it difficult to cope with remote working conditions, court stoppages, and declines in billable hours—all while trying to address a huge influx in proposed litigation. One expert is confident that Litigation Funding is the ideal way to address shortfalls and keep budgets in balance.Digi Herald spoke to funding expert Rene Perras about how non-recourse third-party funding can help. Perras points out that litigation funding has become increasingly popular, and that COVID-19 is going to propel the practice into the mainstream. When a firm is low on operating capital, Litigation Finance can come to its rescue. Funding can allow firms to take on new cases, or help individual plaintiffs pursue legal action when needed. Funding can also improve how cases are managed, as it can cover costs for research, expert witnesses, document analysis, and more. Class action cases in particular are dramatically supported by funders, since they allow lawyers and plaintiffs to put the issue of costs aside as they focus on pursuing the case. This is also true when portfolios of cases are funded. Risks are reduced without impacting potential awards and recovery. Ultimately, Litigation Finance is a way to ensure that justice is available to everyone, regardless of income level.
On this episode, we sat down with Michael Kelley, partner at Parker Poe, a regional law firm representing many of the Southeast's largest companies and local governments. As a former GC himself, Michael discusses litigation funding from an in-house perspective. Why might GCs be reluctant to adopt funding, and are those tendencies changing post-Covid? Plus, what can funders do to differentiate themselves as they approach the GC market? Michael provides invaluable insights into the minds of General Counsel as relates to matters regarding litigation funding. [podcast_episode episode="5859" content="title,player,details"]
CHICAGO – July 13, 2020 - Longford Capital today announced that Marc A. Cavan has joined the firm asDirector. Mr. Cavan will assist with investment sourcing, due diligence, and monitoring of portfolio investments, supporting Longford’s Chicago and Dallas offices. Mr. Cavan is an experienced patent litigator. He has served as lead counsel for clients in the life sciences, healthcare, and technology industries and has successfully handled patent cases in federal courts throughout the United States. Mr. Cavan’s experience includes jury trials, ANDA Hatch-Waxman litigation, arbitrations, and proceedings before the Patent Trial and Appeal Board (PTAB). He is registered as a patent attorney with the U.S. Patent & Trademark Office, and his clients have ranged from start-ups to leading multinationals. Mr. Cavan is also experienced with trade secrets, commercial litigation, and licensing, and he has advised on intellectual property issues for significant mergers and private equity investments. Mr. Cavan’s litigation and counseling expertise has included a range of technologies, including medical devices, pharmaceuticals, health care technology, electronic health records, nanotechnology, software, wireless and internet technology, automotive components, energy, and consumer products. Prior to joining Longford Capital, Mr. Cavan was a partner in some of the most prestigious law firms in the country. Mr. Cavan started his career at Sidley Austin LLP (associate 1998-2006; partner 2006-2011) and was also a partner in the Chicago offices of Ropes & Gray LLP (2011-2015) and Baker McKenzie LLP (2015-2018). Most recently, Mr. Cavan served as the chair of the intellectual property practice at Harrison Law LLC, a Chicago litigation boutique. During his career in private practice, Mr. Cavan earned recognition as a leading lawyer in Chambers USA, International Asset Management, and SuperLawyers. For several years, Mr. Cavan served as a co-chair the Patent Law Institute’s Patent Boot Camp, presenting on strategic patenting issues. Mr. Cavan graduated with honors from Harvard Law School, where he taught legal writing as a member of the Board of Student Advisers and served on the editorial board of the Harvard Journal of Law & Technology. Mr. Cavan graduated magna cum laude and Phi Beta Kappa from DukeUniversity with a B.S. in Biology. After graduating from Duke, Mr. Cavan taught as an Annenberg Fellow and master at Eton College in Windsor, England. Mr. Cavan has been admitted to practice before the United States Patent & Trademark Office, the U.S. Court of Appeals for the Federal Circuit, the U.S. District Court of the Northern District of Illinois, and the U.S. District Court for the Eastern District of Wisconsin. Mr. Cavan has also been a member of the Trial Bar for the U.S. District Court for the Northern District of Illinois. “The current economic climate of uncertainty and volatility has resulted in a jump in demand for our capital and we are expanding our team in response. Before joining Longford, Marc assisted us in the investment selection process evaluating the strength of patent claims; we know his talent as a patent litigator, and we are fortunate to have Marc join our team,” stated Michael A. Nicolas, Managing Director of Longford Capital. About Longford Capital Longford Capital is a leading private investment company with more than $1 billion in assets under management that provides capital to leading law firms, public and private companies, universities, government agencies, and other entities involved in large-scale, commercial legal disputes. The firm manages a diversified portfolio, and considers investments in subject matter areas where it has developed considerable expertise, including, business-to-business contract claims, antitrust and trade regulation claims, intellectual property claims (including patent, trademark, copyright, and trade secret), fiduciary duty claims, fraud claims, claims in bankruptcy and liquidation, domestic and international arbitrations, and a variety of others. For additional information about Longford Capital, please visit www.longfordcapital.com.
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