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CAT Requires Foreign Funder to Comply with ALF’s Rules as Condition of Granting CPO

By Harry Moran |

One of the key talking points following the Supreme Court’s PACCAR ruling was how funders could alleviate external concerns about third-party funding through a rigorous adherence to the industry association’s code of conduct. A recent ruling by the Competition Appeal Tribunal (CAT) has taken this idea and applied it a step further, by holding a foreign funder to a written commitment to adhere to these rules.

An article in Legal Futures details a ruling by the CAT that requires Softwhale Holdings, a foreign litigation funder, to comply with the UK Association of Litigation Funders’ (ALF) code of conduct before it will grant a collection proceedings order (CPO) in the claim Softwhale is funding. Whilst the company, which is part of the Ayre Group owned by Canadian billionaire Calvin Ayre, had already stated that it would voluntarily comply with ALF’s rules, the CAT ruling has enshrined this commitment as a written condition of being awarded the CPO.

The claim at the heart of the issue is targeting four cryptocurrency exchanges which allegedly colluded to delist the Bitcoin Satoshi Vision (BSV) cryptocurrency in 2019. Softwhale is providing up to £18.6 million in funding to bring the claim on behalf of over 240,000 investors who allegedly suffered approximately £10 billion in financial losses as a result of the actions undertaken by Binance, Bittylicious, Kraken and Shapeshift. The class representative for BSV Claims is the former chair of the Competition & Markets Authority, Lord Currie, with Veltior Law providing legal representation.

Softwhale’s funding agreement was first signed in July 2022 and has since been reworked to comply with the requirements imposed by the Supreme Court’s PACCAR ruling. To support the litigation funding agreement, after-the-event insurance of has been secured which covers £2 million pre-certification and £14 million post-certification.

Nakiki SE: Letter of Intent regarding Covid mask litigation; value in dispute up to EUR 34 million

By Harry Moran |

Nakiki SE announces that its subsidiary Legal Finance SE has signed a Letter of Intent for the financing of a so-called corona mask lawsuit with a value in dispute of up to EUR 34 million including costs and interest.

The company that concluded a contract with the Federal Republic of Germany for the supply of Covid masks in 2020 has not been paid and is suing for payment. The case is before the Court of First Instance.

Depending on the outcome of the litigation, the letter of intent provides for a graduated participation of Nakiki SE or its subsidiary in the outcome of the litigation of 15 - 35%.

This is not the lawsuit mentioned in the ad hoc announcement of 9 May 2024, which is still under review, but a different, independent lawsuit.

UK Delays Litigation Funding Bill Until Summer 2025

By John Freund |

One year ago, the UK Supreme Court shook up the litigation funding landscape with its now infamous PACCAR ruling. There has since been a push to reintroduce the Litigation Funding Agreements (Enforceability) Bill, but it appears the decision to do so will now be delayed until this time next year, at the earliest.

City A.M. reports that Lord Sandhurst Guy Rhys wrote to the Ministry of Justice asking if the bill would be reintroduced, and the decision by the Ministry is to wait until an official review has concluded, which should take us into the middle of next year. In its announcement, the Ministry noted "the critical role third-party litigation funding plays in ensuring access to justice," yet also recognized that "concerns have been raised about the need for greater regulation of Litigation Funding Agreements."

The Civil Justice Council is currently reviewing the issue of litigation funding regulation and access to justice in the UK, and aims to conclude its review by the summer of next year.

As expected, litigation funders were not thrilled with the Ministry's response. Neil Purslow, chairman of the International Legal Finance Association, said “it’s deeply disappointing the government has taken the decision to seemingly deprioritise access to justice for people like the sub-postmasters by kicking the can down the road.” Of course, industry opponents such as the U.S. Chamber of Commerce rejoiced at the decision, with Seema Kennedy, executive director of Fair Civil Justice proclaiming that "despite the claims from funders and law firms about the existential risk to the industry, there has been a surge of new group action claims, with funders able to find work-arounds to existing agreements and proceed much the same as before.”

If that sentiment is correct, it dose pose the question as to the purpose of the regulation in the first place. Perhaps the Civil Justice Council will consider that in their forthcoming review.

Clarion Promotes Partner in Costs and Litigation Funding Team

By Harry Moran |

In a press release from Clarion, the Leeds-based law firm announced the promotion of a partner in its Costs and Litigation Funding Team.

Stephanie Kaye joined Clarion as a Paralegal in 2013 and has since become well regarded for both her networking skills and expertise. Named as a ‘Rising Star’ by Chambers and Partners in 2020, Stephanie has gone on to be recognised as a ‘Leading Individual’ in the rankings for the past three years.

The team has been ranked as Band 1 for legal costs services by Chambers and Partners for the past five years, and Stephanie’s strong national reputation has enabled her to play a key role in the development and growth of the team.

The Costs and Litigation Funding team advise on a range of matters, specialising in Court of Protection, Cost Management and Litigation Costs, with a very strong UK reputation and growing expertise in high value international costs work. Andrew McAulay, who heads up the team, has been recognised as a leading individual by Chambers for the past five years.

As well as leading the Court of Protection costs service, Stephanie has helped create and cultivate the culture at Clarion. She’s an expert mentor and her role managing junior talent through their apprenticeships and leading on diversity and inclusion initiatives has been invaluable for the firm.

Speaking on the promotion, Roger Hutton, Joint Managing Partner at Clarion, said: “Stephanie has gone from strength to strength, since joining Clarion 11 years ago. It’s no surprise and yet no mean feat, that Stephanie has now moved into the role of Partner – a role I know she’ll thrive in.

“It’s talented individuals like Stephanie who not only help us deliver our national growth strategy, but they are also instrumental in attracting the best talent across the region.”

“The Costs and Litigation Funding team has worked hard to become nationally recognised for the trusted support, advice and expertise it offers to its clients. Stephanie has played an instrumental role in this, and her promotion is testament to that.”

Community Spotlights

Member Spotlight: Alfonso Garcia Chan

By Alfonso Chan |

Alfonso Chan is a trial lawyer who focuses on litigating and licensing complex intellectual property cases on behalf of universities, research institutes and technology companies. His matters are primarily focused on semiconductors and electronic technology-intensive matters, as well as biomaterials and medical devices.

Alfonso represents plaintiffs and defendants in district courts nationwide and before the Federal Circuit Court of Appeals. He is also registered to practice before the U.S Patent and Trademark Office (USPTO) and has experience in inter partes review proceedings before the Patent Trial and Appeal Board (PTAB). His international practice includes handling matters in China, Taiwan, Japan, Korea and Europe. Alfonso served as an adjunct professor of International Comparative Law at Southern Methodist University, Dedman School of Law. Prior to practicing law, Alfonso was an officer in the United States Navy and nuclear propulsion engineer at Naval Reactors Headquarters. Alfonso received his JD from the Dedman School of Law and a Masters in Engineering from the University of Virginia.

Company Name and Description: King & Spalding helps leading companies advance complex business interests in more than 160 countries. Working across a highly integrated platform of more than 1,300 lawyers in 24 offices globally, we deliver tailored commercial solutions through world-class offerings and an uncompromising approach to quality and service.     

Company Website: kslaw.com/?locale=en

Year Founded: 1885

Headquarters: Atlanta, Georgia, U.S.A.

Area of Focus: Intellectual Property Litigation, Innovation Protection 

Member Quote: “Patience and flexibility are essential to crafting a funding solution. The marketplace does not suffer cowboys gladly.”

Community Spotlights

Member Spotlight: Davide De Vido

By Davide De Vido |

Davide De Vido is an Italian lawyer with significant expertise in commercial and company law consultancy and disputes. In 2000, Davide started his career as an in-house counsel for a leading industrial group in the production and sale of building materials, gaining experience in complex transactions and corporate dispute resolution.

Subsequently, he assumed the same role for a leading company in the field of production and sale of eyewear, and after these two experiences, Davide founded his own law boutique.

In 2019, Davide entered in the litigation funding industry and founded FiDeAL®

Company Name and Description: FiDeAL® is a full consultancy company of litigation finance (funding and insurance) solutions that works across Europe with a particular focus on the Italian legal market.

We assist those seeking financial solutions to pursue single cases, and also help create portfolio claims. We collaborate with law firms, associations, other NG organizations, companies and litigation funds or investors to structure complex projects.

Last June, through collaboration with expert and university professors, FiDeAL has established its environmental, climatic, and ESG law department to offer the highest level of expertise in preparing, structuring, and conducting in-depth legal and economic analyses of projects, making the funding process more efficient and effective.

Company Websitewww.fideal.it

Year Founded:  2019

Headquarters:  31020 San Vendemiano (Treviso), Italy

Area of Focus: Advising and brokering all types of litigation finance related matters. Since June 2024, FiDeAL has been working in environmental/climate/ESG law to help protect the planet and improve people's quality of life and business relations.

Member Quote: We dream of a world where access to justice is democratized and easily accessible globally for each individual, company or entity.

COURT HOUSE CAPITAL APPOINTS HEATHER COLLINS AS CHIEF INVESTMENT OFFICER

By Harry Moran |

Court House Capital is delighted to welcome Heather Collins as Chief Investment Officer and member of the Investment Committee, responsible for assessing and overseeing investment opportunities for the business across Australia and New Zealand.

Heather is a veteran commercial litigator with significant experience in the litigation funding sector, commercial legal practice and in-house corporate counsel roles spanning insolvency, banking and finance, property, construction, Corporations law, trade practices and employment law. Heather is highly regarded leader in the sector and is a former President of the Women’s Insolvency Network Association NSW branch (WINA), a Professional Member of the Australian Restructuring & Insolvency Association (ARITA) and the Turnaround Management Association Australia (TMA), and is recognised in Chambers and Partners Litigation Support (2024) and Lawdragon Global 100 Leaders in Litigation Finance (2021-2024). In her newly created role, Heather will work alongside the wider team and Chief Executive Officer Michelle Silvers who leads Court House Capital’s overall business strategy and operations. 

“We are seeing increasing demand for funding across Australia and New Zealand, and I am absolutely delighted to welcome Heather Collins as Chief Investment Officer in response to this growth. Heather brings a wealth of experience in funding and commercial litigation, and as Chief Investment Officer she will work closely with me to expand our business and oversee our investment portfolio.” Michelle Silvers, Chief Executive Officer, Court House Capital

“I’m thrilled to join the wonderful team at Court House Capital, in the newly created role of Chief Investment Officer. I have tremendous respect for Michelle and the Court House Capital team and look forward to bringing my extensive legal and funding experience to support our funded claimants and the stellar law firms we work with.” Heather Collins, Chief Investment Officer, Court House Capital

ABOUT COURT HOUSE CAPITAL

Court House Capital is a leading litigation funder focused on cases in Australia and New Zealand. Led by industry founders, with Australian based capital, the team is renowned for expertise, agility and collaboration. courthousecapital.com.au

$90M Settlement Reached in LCM-Funded Claim Against Tanzania

By Harry Moran |

As LFJ reported in July of last year, a claim funded by Litigation Capital Management (LCM) and brought against the Tanzanian Government had achieved a landmark victory, after Indiana Resources was awarded $109 million in damages. Nearly a year later, the parties have come to an agreement which will see the claimant receive 82.5% of the original award.

Reporting by the Cairns Post covers the outcome of an annulment hearing conducted by the International Centre for Settlement of Investment Disputes (ICSID), with a settlement that will see the Tanzanian Government pay Indiana Resources $90 million over its unlawful expropriation of Ntaka Hill base metals project. Whilst the claimant has already received one payment of $35 million, it has now been agreed that Tazania will pay a further $25 million by October 25, 2024 and $30 million before March 30, 2025.

Commenting on the outcome of the ICSID hearing, Indiana Resources’ executive chairman, Bronwyn Barnes said that “this settlement clearly demonstrates Tanzania’s commitment to work with international mining investors to resolve the historical dispute between the parties.” Barnes went on to add that he is confident “Tanzania will fully abide by the terms of the settlement and that the remaining instalment payments will be made by Tanzania in compliance with the agreed terms.” 

The settlement contains provisions to ensure that if Tanzania does not fulfil these agreed payments, then proceedings can be recommenced before ICSID, which would include the enforcement of the award and seizure of Tanzanian assets to do so. Whilst the initial $35 million payment has been set aside to repay LCM’s funding and legal costs, identified to be approximately $23 million, the remainder of this payment has been retained to cover any of the proceedings that would ensue under such a breach of the settlement agreement.

The original July 2023 decision by an ICSID ad hoc arbitral panel, found that Tanzania had breached the UK-Tanzania Bilateral Investment Treaty when it cancelled a mining retention license and seized the Ntaka Hill Project which had been held by a trio of three companies under majority ownership of Indiana Resources. As the manager of the joint venture, Indiana Resources had led the claim of arbitration against the Tanzanian government since 2019 and according to an announcement in August 2020, had secured $4.65 in funding from Litigation Capital Management.

Report Suggests ISDS Claims is Creating a “Chilling Effect” on State Climate Action

By Harry Moran |

Investor state treaty disputes have often represented a valuable investment opportunity for litigation funders, such as the claim brought by Rockhopper Exploration against the Italian government that LFJ reported on in 2022. However, a report by an environmental group argues that the high volume of these claims will result in states taking a more cautious approach when it comes to combatting climate change.

An article on BNN Bloomberg highlights a new report from climate think tank E3G which examines the use of Investor-State Dispute Settlement (ISDS) claims against national governments, and argues that the fossil fuel industry is claiming billions of dollars in damages whilst having a “chilling effect” on climate action. Using data from the International Institute for Environment and Development, the report found that 20% of the 1,700 public cases have involved companies in the fossil fuel industry, with at least $80 billion recovered in damages. 

The Rockhopper Exploration claim is highlighted as an example of this trend, with the firm being awarded €190 million ($206 million) in damages from the Italian government, over the state’s denial of a production concession from its ban on oil and gas exploration. The Rockhopper claim was financed by Harbour Litigation Funding, and whilst the Italian government is attempting to have the award annulled, Rockhopper’s CEO has stated that they expect the “the annulment request will be rejected in due course.”

Lisa Sachs, director of the Columbia Center on Sustainable Investment, spoke with Bloomberg and said that as long as funders are willing to back the companies making these cases, “states that take necessary climate-related measures may be exposed to increasing risk of abuse of ISDS claims.” Tai-Heng Cheng, a partner at Sidley Austin, argues that investors and states may eventually find a pragmatic common ground on these treaty disputes, “but until we get there, there is a period of instability that we’re going through.”