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Easy Legal Finance Inc. acquires Settlement Lenders Inc.

Easy Legal Finance Inc. a Canadian litigation financing firm, announced today the acquisition of Settlement Lenders Inc. Based in Edmonton, Settlement Lenders Inc. started serving clients in the early 1990s as one of the first firms in the country to offer pre-settlement lending to personal injury plaintiffs. With this announcement, the Easy Legal Group of Companies has acquired the three original and most established litigation lenders in the country, creating an unparalleled portfolio of national brands. "Despite the challenges presented by COVID-19, we remain focused on our goal of strategic growth, through the acquisition of well-established and successful businesses. This acquisition, in addition to Seahold Legal Finance completed last year, demonstrates our continued commitment to servicing this sector," said Larry Herscu, President & CEO of Easy Legal Finance Inc. "Over the past 30 years, we have been providing personal injury plaintiffs with the financial support required, through the legal process," said Tim Latimer, President & CEO of Settlement Lenders. "Easy Legal's reputation for client service is uniquely aligned with ours and I'm pleased to have them further expand our service offering and evolve the firm, for the benefit of our clients and lawyer partners." Mr. Herscu also added that, "The Easy Legal Group of Companies will maintain its mission and remain dedicated to helping those who have been hurt, are in need of financial support, in partnership with the plaintiff bar and its service providers." About the Easy Legal Group of Companies
The Easy Legal Group of Companies is a Canadian litigation financing firm. Its lending solutions service the personal injury sector including plaintiffs with pending injury claims, their legal representatives and the service providers involved in their cases. The firm is registered to conduct business in Ontario, B.C., Alberta, and the Atlantic provinces. Services are delivered through four brands: Easy Legal Finance Inc., Rhino Legal Finance, Seahold Legal Finance and Settlement Lenders. www.easylegal.ca www.rhinofinance.com www.seahold.ca www.settlementlenders.com
Commercial Covid-19

Insolvency Claims in 2021

Given the impact of COVID, insolvencies are on everybody’s mind--how to avoid them or how to navigate them. Knowing what to do when you find yourself in the middle of a business or personal insolvency is crucial. Litigation funding may be one of the most valuable tools in the insolvency toolbox.

Harbour Litigation Funding director Charles Jeffrey has some predictions for 2021. He explains that in the UK, insolvencies were actually down in 2020 despite the ravages of COVID on numerous industries. This is because government assistance has been plentiful. Most programs helping small businesses have been extended through March of this year. After that, things become more unpredictable.

Jeffrey details that businesses in the most danger of insolvency are those that were already struggling. But he stresses that few businesses are pandemic-proof. He also notes that when any business goes under, it has the potential to impact supply chains, creditors, and others that might set off an insolvency chain reaction.

Common claims often pursued in insolvency cases include:

1. Unlawful dividends 2. Undervalued transactions 3. Malfeasance 4. Breach of Duty 5. Wrongful trading

Litigation funding can be a key part of successfully navigating insolvency. Legal costs can add up fast, and insolvent businesses or estates are generally not flush with liquidity. Insolvency practitioners are duty-bound to look into legal funding if funds aren’t available to bring appropriate claims. Jeffrey details that IP’s can assign claims to a funder in exchange for payment upfront. This can be used to cover legal fees and the IP’s fees during the liquidation. Monetizing claims are not allowed in all jurisdictions, but become a valuable financial tool when available.

A conversation with a litigation funder can increase understanding of one’s options during an insolvency situation. Experienced funders will be adept at navigating the process, and explaining one's options in a way that allows one to make informed decisions on how best to proceed.

Commercial

Litigation Finance Provides Peace of Mind in Trade Secrets Cases

As any lawyer will tell you, emotion and litigation are not a good mix. Still, it can be difficult not to feel emotional when a betrayal, theft, or other act of deliberate impropriety leads to trade secrets litigation. Omni Bridgeway explains how a third-party litigation funder can make the litigation process more effective and less disruptive to the business at hand. Experienced funders will be adept at vetting cases in terms of merit, the likelihood of success, and the process that will be needed to ensure that any awards will be collected. Funders can also advise on strategy—though final decisions are always left to clients and their legal teams. Because funders look at cases as investment opportunities, they’re more adept at seeing the facts objectively. The due diligence conducted by potential funders can increase client understanding of the potential pitfalls of the case. Trade secrets cases are among the most complex cases to litigate. The increase in digital information and remote work means that data is more vulnerable than ever. Having an established funding firm on your side provides more than funds—it provides a wealth of knowledge and sophistication that only comes from experience. Trade secrets cases can lead to huge awards, with some recent cases reaching into the nine figures. Cases may also move to federal courts in some circumstances, owing to the federal Defend Trade Secrets Act. This 2016 law encourages filing trade secrets cases in federal district courts. If pursuing trade secrets legislation is in keeping with the business objectives of your company, having experienced third-party funders in your corner is a savvy move.
Commercial

Liability Rates See Major Increases

Some say Litigation Finance is partly to blame for the latest round of insurance rate increases. Many speculate that an increase in the number of cases and award sizes have led to significant rate hikes. Business Insurance details that auto liability rates climbed about 11%, and general liability went up 6%. Excess liability, however, saw a staggering rate hike of between 50-160%. Some businesses that saw rate increases last year believed they’d be immune in 2021. Not so. Some policyholders who saw huge rate increases last year are still enduring 10-20% rate hikes this year. In addition to the raising of rates, policies are more likely to include exclusions related to infectious disease. This obvious response to COVID means policyholders may not even be getting the protection they’re paying for. This is one of many factors that has led to the purchase of less coverage overall. As policyholders deal with increased risk or losses, they face the possibility of being dropped by their incumbent insurers, leaving them without affordable options. Why is Litigation Finance being touted as a reason for higher insurance rates? Third-party legal funding has been an instrumental part of class action cases for over a decade. Its influence continues to grow, as legal professionals come to appreciate its value. By increasing access to justice for those who can afford it least, litigation funding also increases accountability among insurers who may now have their feet held to the proverbial fire. Perhaps in addition to raising rates, insurers can do more to ensure that their conduct doesn’t inspire a need for class actions. Negating the need to pursue litigation may be the best way to avoid paying a judgment.
Commercial

Hausfeld Adds Two New Partners to Roster

Two London-based lawyers have been promoted to Partner at specialist litigation firm, Hausfeld. These promotions echo the number of partnership elevations from the previous year. Hausfeld has added a litigation funding arm to its operation, making it one of a growing number of law firms that has done so. Global Legal Post details that Lucy Rigby specializes in collective redress, and had been promoted to counsel last year. Luke Streatfield is currently involved in the first class action claim under the Consumer Rights Act. He is a competition litigation specialist. Global vice-chair for Hausfeld, Anthony Maton, affirms that while Hausfeld has had a challenging 2020, the firm is pleased to recognize and elevate exceptional talent. The London team has been busy, filing four UK collective actions in the past year. These appointments bring Hausfeld’s partner number to 18, 45% of whom are women.
Commercial

Montero Receives Litigation Funding for Case Against Tanzanian Government

Last year, mining and exploration giant Montero, announced its intention for arbitration after accusing the government of violating several provisions of the Bilateral Investment Treaty. The dispute pertains to acts and omissions by the Government of Tanzania that allegedly breached BIT and caused harm to Montero and others. Mining Review explains that the Canadian arm of Omni Bridgeway is providing more than $2.3 million in funds to cover fees, expenses, and legal costs, including enforcement if necessary. Jeantet, who represents the plaintiff, plans to aggressively pursue appropriate compensation in relation to the illegal acts of the Tanzanian Government. Montero declined to comment on the case. It is believed, however, that Montero lost the entirety of its investment in the project in question when its retention license was canceled in 2018. This occurred as part of amendments to existing mining acts, that ultimately gave licensing back to the government. Compensation, if awarded, is expected to include the original investment value, the value of the project itself, and the damages suffered by the company itself. Filing a notice of intent begins a six month consultation period where parties are encouraged to settle out of court. Tanzanian Government officials allegedly made no effort to find a compromise.
Commercial

Scandalous Allegations in Class Action Against Australian Government

A boy sent to Christmas Island in spite of being only 14 is now leading a class action against the Australian government. He is one of at least 100 children prosecuted during a 2-year period beginning in 2010. Ali Yasmin was judged to be an adult after using wrist X-rays, a now-discredited method of determining age. The class action is being funded by an undisclosed litigation finance firm. Yasmin et al are represented by Ken Cush & Associates. The Guardian details that Yasmin’s conviction for smuggling asylum seekers was overturned eventually, but not before he spent more than two years in an adult prison. The Australian Human Rights Commission had already determined that multiple breaches of international human rights laws had been committed. Solicitors for the Australian government are calling the allegations ‘vague’ and needlessly sensationalized, despite breaches detailed in the AHRC’s 2012 report. Yasmin also asserts that nearly 100 days of his prison stay were an unlawful breach of the Migration Act and its requirement that detention only be applied to minors in extreme circumstances. This case illustrates yet again the power of litigation funding to increase access to justice to the marginalized. Without financial backing, class actions like this would be unlikely to move forward.
Commercial

New Talent Flocks to Litigation Finance

New year, new job. Litigation Finance has been expanding as an industry for over a decade. Investment size is growing, more and more clients are seeking out funding, and big names in law, tech, and finance are clamoring to get in on the action. Westlaw reports that Delta Capital Partners Management LLC has brought in a new president. Peter Cornell is formerly of Clifford Chance, and joins the Chicago-based private equity firm this year. A new legal finance firm, Contingency Capital, has hired Jeff Cohen—formerly of Greenwich, Connecticut firm Southpaw Asset Management. Cohen joins the New York firm as a partner and managing director. Some say that legal finance came into its own with the formation of the International Legal Finance Association—an advocacy organization made up of funders from around the world. If these two hires are any indication, prominent law firm and investment professionals are eager to join the growing industry. 
Commercial

What’s Ahead in 2021 for Litigation Funding

As COVID, politics, and financial uncertainty continue into a new year, savvy predictions are the order of the day. With that in mind, CEO of Validity Finance, Ralph Sutton, shares his predictions for third-party legal funding in the coming year. Bloomberg Tax details that in 2020, Litigation Finance saw increased transparency as well as the formation of the industry’s first international association. Portfolio funding and monetization of cases grew in number and sophistication. And of course, returns have been exceptional across the industry. COVID has brought about much in the way of innovation. Communications have become more reliant on digital, long-distance tech. Privacy and security infrastructure has been expanded due to the absence of face-to-face meetings. Mediation also replaces litigation more often, when possible. Litigation Finance is poised to increase its engagement with large corporations and in-house counsel. The ongoing need for liquidity brought about by COVID will likely continue as businesses and firms require ready access to operating or expansion funds. Right now, litigation funders are flush with cash. Investments in the industry are staggeringly high, which means competition for high-profit cases may become robust. More funders will likely find themselves with fewer strong cases to choose from, creating a market where greater risk-taking is necessary. In the coming year, more mergers are expected, as well as the addition of complementary business to existing funding firms. Litigation funders might do well to add economic experts to their repertoire. Ditto claims management professionals, asset recovery specialists, and tech experts, who might all add value to existing litigation funding firms. Ultimately, relationships will play a key role in the success or failure of litigation funders in 2021. Building trust, a reputation for fair dealing, and strong client relationships will make all the difference.