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Darrow Names Mathew Keshav Lewis As Chief Revenue Officer & US General Manager

Darrow, the leading AI-powered justice intelligence platform, today announced the appointment of Mathew Keshav Lewis as its first Chief Revenue Officer and US General Manager. Lewis brings over 20 years of experience driving revenue and growth for high-profile legal and technology companies – including SaaS platform Dealpath, alternative investment platform Yieldstreet, and legal services pioneer Axiom Law – and will be responsible for helping Darrow scale as it continues an accelerated growth trajectory. 

"Mathew's arrival at Darrow opens enterprise-level deals to all plaintiff law firms, previously accessible only to a select few,” said Evyatar Ben Artzi, CEO and Co-Founder of Darrow. “His expertise from YieldStreet and Axiom empowers our partners to leverage AI, driving unprecedented growth and innovation.” 

Lewis, who will be based in Darrow’s New York headquarters, joins Darrow after serving as the first Chief Revenue Officer of Dealpath, a real estate deal management platform. He also previously held the role of Chief Revenue Officer and GM, Investments at Yieldstreet, where he drove record revenue and growth for the investment platform. 

“I’m delighted to join a team of tremendously talented individuals at Darrow, who have already disrupted the legal technology space and forged the path ahead,” said Mathew Keshav Lewis, Chief Revenue Officer & US General Manager of Darrow. “I am inspired by Darrow’s progress to date, and I look forward to working alongside Darrow’s growing team to expand the company’s footprint.”

This announcement comes at a period of rapid growth for the company, which completed its $35 million Series B funding round last year. Darrow currently works on active litigation valued over $10 billion across legal domains such as privacy, consumer protection, and antitrust. 

About Darrow: Founded in 2020, Darrow is a LegalTech company on a mission to fuel law firm growth and deliver justice for victims of class and mass action lawsuits. Darrow's AI-powered justice intelligence platform leverages generative AI and world-class legal experts and technologists to uncover egregious violations across legal domains spanning privacy and data breach, consumer protection, securities and financial fraud, environment, and employment. Darrow is based out of New York City and Tel Aviv. For more information, visit: darrow.ai

Summary of the Lords’ Committee Stage Debate on the Litigation Funding Bill

Following the second debate of the Litigation Funding Agreements (Enforceability) Bill in the House of Lords, the bill was moved forward to the committee stage for members to propose amendments and undertake a line by line examination. As LFJ reported yesterday, three amendments were proposed in advance of the committee debate, with two being put forward by Lord Stewart of Direlton, the Advocate-General of Scotland, and one by Lord Marks of Henley-on-Thames. 

LFJ has read through the full transcript of the committee stage debate and has provided a summary, highlighting key takeaways from the contributions made by each of the members of the House.

Yesterday’s debate was opened by Lord Stewart, who began by responding to issues raised by other members during the second reading of the bill. With regards to the retrospective nature of the bill, Lord Stewart acknowledged the potential issues that this could raise for claimants who negotiated new funding arrangements post-PACCAR, and told the House that “the Government are looking into the questions raised and hope to provide a further update on Report.” 

Lord Stewart then went on to introduce the two amendments on behalf of the government, starting with Amendment 1 which was described as a “technical amendment” and was designed to close a small gap in the definition of litigation funding agreements (LFAs). He explained that the amendment would ensure that an LFA “which is used to fund items of expenditure where the litigant is unrepresented” will be rendered enforceable by the new legislation. He stated that this amendment “reflects the policy object of the Bill”, and would avoid any LFAs being missed in the government’s efforts to reverse the impact of the PACCAR ruling.

Amendment 2 was also described as another technical change, which Lord Stewart said would “make it clear that the payment of adverse costs the litigant may be required to pay to another party, which would be funded under an LFA, includes the payment of costs following court, tribunal or arbitration proceedings, or as part of a settlement.”

Following on from Lord Stewart’s introduction of the government’s amendments, Lord Marks began by covering the arguments in favour of the introduction of regulation for the litigation funding market. Among these arguments, the most prominent point raised by Lord Marks was the idea that “in an unregulated market, litigation funders can effectively impose their terms on clients”, thereby reducing the amount of compensation that claimants may receive from any settlement. He also pointed to the question posed by others that, “if regulation of DBAs is appropriate for lawyers, why is it not for litigation funders?”

Lord Marks then continued on to address the issue of “retrospectivity” in the bill, noting that concerns had been raised that the retrospective nature of the bill and that any legislation attempting to include such a measure, must demonstrate “special justification”. Lord Marks said that he had concluded that in order to avoid “confusion and uncertainty”, this was one such situation that demonstrated special justification because it would ensure  that “in the case of LFAs between the PACCAR decision and the commencement of this Bill, such LFAs should be in the same position as LFAs entered into in the interregnum or in the interim period.”

Moving on to his own probing amendment, which called for a review into third-party funding and laid out the scope of the proposed review’s focus, Lord Marks acknowledged that “it has been comprehensively and well answered” both by letters from the Secretary of State and Lord Stewart, and by the publishing of the terms of reference for the Civil Justice Council (CJC) review. He went on to say that he was “pleased to see that the Government realise that this is urgent and that the whole question of looking at the field of litigation funding is both important and urgent.”

Speaking briefly about the CJC’s planned review, Lord Marks expressed that he was pleased to see the breadth of the review’s remit, including the issue of “whether there should be regulation and how, if there is to be regulation , it should be framed.” Among the other important issues that the review will be exploring, Lord Marks highlighted areas including the idea of a cap on funder’s returns, the recoverability of funder’s costs, and the potential conflicts of interest between funders, law firms and their clients.

Lord Marks closed his contribution by voicing his support for both of the government’s amendments.

Lord Carlile of Berriew was the next member of the House to speak, addressing the questions previously raised around the bill’s potential to violate the Human Rights Act and whether the retrospective quality of the bill. Lord Carlile spoke succinctly in saying that the arguments about the Human Rights Act were “not strong, and the Government are perfectly entitled to act as they are in that regard.” Furthermore, he went on to say that this legislation “would be absolutely pointless if it were not retrospective”, arguing that the purpose of the bill was to “right a wrong that nobody expected, and it is simply restoring to people the legal rights which they already had.”

Lord Carlile also took time to briefly endorse the CJC review and its terms of reference, going on to praise the choice of the CJC as the reviewing body. He explained that he would not be “an enthusiast for an independent reviewer in this situation”, and that the CJC would have the ability to be flexible whilst also retaining the ability to “change the law in small ways to ensure that appropriate procedures are followed.”

Baroness Bennett of Manor Castle followed Lord Carlile but rose to voice opposition to the current approach to this legislation and said that it “is still not an adequate solution to the problems at hand.” She argued that the government is actually facing “a structural problem”, arguing that the current legal system demonstrates a “huge inequality of arms”. She concluded by saying that under this existing system, which the bill does not attempt to deal with, “there is far too much justice denied to individuals in our society when they are crushed by the weight of corporations or the state.”

Lord Sandhurst joined Lord Carlile in supporting the government’s amendments, arguing in favour of the retrospective nature of the bill whilst this opens up the possibility of “a spate of future litigation of the wrong satellite nature”, the government cannot afford to allow the current situation to continue. Considering the issue of a challenge by the ECHR, Lord Sandhurst argued that when crafting this type of legislation, “There may be no perfect answer, but this is the right route—or the least bad.”

Lord Thomas of Cwmgiedd spoke briefly in support of the bill and the CJC review, noting that the reviewer will be able to draw upon the lessons learned during Australia’s review of litigation funding regulations and the research completed by the European Law Institute. He argued that the example of Australia may demonstrate that the best strategy is not “the creation of yet another regulatory body” but instead giving the courts “the powers and guidance necessary to deal with the issues.”

Lord Ponsonby of Shulbrede was the final peer to join the debate and took the time to address the real world use cases for litigation funding, highlighting its value to small and medium-sized companies to manage their cashflow whilst pursuing meritorious litigation. He argued that the use of LFAs is an ideal “way of managing risk”, and that the UK should not fall behind other jurisdictions such as Singapore, Australia, and Dubai, which would happily take up this share of the global litigation funding market.

Lord Stewart returned to the floor to close out the debate, taking the time to address issues and concerns raised by each of the members and reiterate the objectives of the government’s bill. Of primary importance procedurally, Lord Stewart focused on Lord Marks’ amendment requiring a review of the third-party funding sector, stating that in the face of the CJC review “his amendment is not necessary and will duplicate efforts.” Therefore, he requested that Lord Marks not press the amendment at this stage.

At the close of the debate, both of the government’s amendments were agreed and as Lord Marks had decided not to press his amendment, the debate was ended. The amended version of the bill can be read here.

The bill now moves to the report stage, which provides an opportunity for members of the Lords to further examine the bill and propose any additional amendments to the text. 

The full transcript of the committee stage debate can be read here.

Omni Bridgeway Releases Investment Portfolio Report for 3Q24

Omni Bridgeway Limited (ASX: OBL) (Omni Bridgeway, OBL, Group) announces the key investment performance metrics for the three months ended 31 March 2024 (3Q24, Quarter) and for the financial year to date (FYTD).

Summary

  • Investment income of A$296 million FYTD; A$56 million provisionally attributable to OBL.
  • 23 full completions, 17 partial completions FYTD, with an overall multiple on invested capital (MOIC) of2.0x.
  • A$333 million of new commitments FYTD with a corresponding A$447 million in new fair value, on track to achieve our A$625 million target.
  • Pricing remains at improved levels, up 32% for the FYTD compared to FY23.
  • Strong pipeline, with agreed term sheets outstanding for an estimated A$212 million in new commitments.
  • OBL cash and receivables of A$101 million plus A$60 million in undrawn debt at 31 March 2024.
  • A$4.4 billion of possible estimated portfolio value (EPV) in completions over the next 12 months. 
  • Further simplification and enhancement of our disclosures as announced at the Annual General Meeting, comprising non-IFRS OBL-only financials and non-IFRS fair value on a portfolio basis and OBL-only basis.
  • These new disclosures and metrics, as well as a valuation framework for our existing book and platform, were presented at our investor day on 27 March 2024.

Refer to https://omnibridgeway.com/investors/investor-day.

Key metrics and developments for the Quarter

Income and completions

  • Investment income of A$296 million generated from A$193 million income recognised and A$103 million income yet to be recognised (IYTBR), with A$56 million provisionally attributable to OBL FYTD (excluding management and performance fees). 
  • During the Quarter, 11 full completions and 11 partial completions (excluding IYTBR), resulting in 23 full completions and 17 partial completions (excluding IYTBR) FYTD, and one secondary market transaction, with a FYTD overall MOIC of 2.0x.

New commitments

  • Our stated targets for FY24 include A$625 million in new commitments or equivalent value, prioritising value over volume to reflect potential for improved pricing of new commitments.
  • FYTD new commitments of A$333 million at 31 March 2024 (from matters that were newly funded, conditionally approved or had increased investment opportunities). 
  • The fair value associated with these commitments is $447million, 72% of the full year value generation target.
  • Pipeline of 37 agreed exclusive term sheets, representing approximately A$212 million in investment opportunities, which if converted into funded investments is a further 34% of our FY24 commitments target.  
  • In addition to the regular new commitments to investments in the existing funds FYTD, an additional A$11.5 million of external co-fundings were secured for these investments to manage fund concentration limits. OBL will be entitled to management fees as well as performance fees on such external co-funding.

Portfolio review

  • A$4.4 billion of EPV is assessed to possibly complete in the 12 months following the end of the quarter. This 12 month rolling EPV is based on investments which are subject to various stages of (anticipated) settlement discussions or for which an award or a judgment is expected. All or only part of these may actually complete during the 12 month period.
  • We anticipate replacing these final EPV metrics with fair value metrics by the end of this financial year.

Cash reporting and financial position

  • At 31 March 2024, the Group held A$100.7 million in cash and receivables (A$62.8 million in OBL balance sheet cash, A$2.0 million in OBL balance sheet receivables and A$35.9 million of OBL share of cash and receivables within Funds) plus access to a further A$60 million in debt.
  • In aggregate, we have approximately A$161 million to meet operational needs, interest payments, and fund investments before recognising any investment completions, secondary market sales, management and transaction fees, and associated fund performance fees.
  • Post Quarter-end and as per the date of this report, in anticipation of the expiry of the availability period of the debt facility, OBL has drawn down the A$60 million in undrawn debt and received the funds.

Investor day

The investor day presentation and Q&A which took place on 27 March 2024 can be viewed at https://omnibridgeway.com/investors/investor-day.

Litigation Funding Support Ensures Law Firm Can Continue MoD Lariam Claims

A frequent talking point among claimant law firms and litigation funders is the use of delaying and prolonging tactics by defendants, hoping to continually increase the financial cost of bringing a case until it is no longer viable to do so. However, as a recent example demonstrates once again, third-party litigation funding provides a significant weapon in the claimant’s arsenal when it comes to combating this type of strategy.

An article in The Law Society Gazette covers ongoing developments in the group action being brought against the Ministry of Defence over claims that its prescription of Lariam, an anti-malarial drug, caused harmful side effects to armed forces personnel. The law firm leading these claims, Hilary Meredith Solicitors, has denied reporting that it is facing bankruptcy due to the large costs involved in the case, and told the Gazette that its financial backing is secure.

In a statement to the Gazette, the law firm stated that its “bank and litigation funders have confirmed their ongoing financial support”, which will allow the law firm to continue with the Lariam cases without fear of bankruptcy. Hilary Meredith Solicitors admitted that whilst it had been necessary “to borrow millions of pounds to fund this David and Goliath type action”, the law firm’s financial footing was secure with the support of outside lenders.

The identity of the litigation funder supporting Hilary Meredith Solicitors is not specified by the law firm’s statement or the Gazette’s reporting.

The firm also confirmed that with 10 lead cases scheduled for trial at the High Court next year, they are now “close” to agreeing a settlement with the MoD. The Gazette also cites its reporting from last year, which revealed that the MoD had spent £20 million on its legal budget to defend against the claims brought between 2021 and 2022.

Three Amendments to the Litigation Funding Bill Discussed at Committee Stage

As the Litigation Funding Agreements (Enforceability) Bill is subject to a line by line examination during the committee stage today, we can analyse the amendments that have been put forward by members of the House of Lords. Of the three amendments that were discussed during the committee stage, two were put forward by Lord Stewart of Direlton and one by Lord Marks of Henley-on-Thames.

Both of Lord Stewart’s amendments deal with the section of the bill that provides a definition of a litigation funding agreement.

The first of Lord Stewart’s amendments calls for the following line to be inserted at the end of the Clause 1, page 1, line 14: “(ia) where the litigant is a litigant in person, expenses incurred by that litigant, or”. In his explanatory statement, Lord Stewart said that this language “ensures that the definition of litigation funding agreements includes agreements under which a funder agrees to fund expenses incurred by a litigant in person.” 

The second of Lord Stewart’s amendments relates to Clause 1, page 1, line 16, which would take the following sentence: “the payment of costs that the litigant may be required to pay to another person by virtue of a costs order”, and would now be followed by: “, an arbitration award or a settlement agreement”. Lord Stewart explained that this would ensure that the bill’s definition of an LFA would also include “agreements under which a funder agrees to pay costs relating to litigation that arise by virtue of an arbitration award or a settlement agreement, as well as by virtue of a costs order.”

Lord Marks’ “probing amendment” would follow Clause 1 and would be titled “Review: enforceability of litigation funding agreements”. The language of the amendment requires the Lord Chancellor to “establish an independent review of the impact of provisions in this Act” and lays out the scope of such a review. This would include a review of safeguards for claimants, regulation of third-party funding, funders’ returns, and alternatives to LFAs. The amendment dictates that the review must be completed by 31 August 2025, and that the Lord Chancellor must then provide a response before Parliament within three months of receiving the review.

The full text of the amendments can be read here.

The current version of the bill can be read here.

LFJ will be providing a summary of the committee stage hearing once the Hansard transcript is available.

Community Spotlights

Member Spotlight: David Harper

With over two decades of experience in technology and Business Process Outsourcing (BPO), David Harper has made significant strides in the UK's BPO landscape, particularly noted for scaling one of the fastest-growing BPO businesses focused on enhancing customer experience and retention. 

David's expertise in navigating complex outsourcing and insourcing strategies has helped numerous top-tier law firms boost efficiencies and cut costs, effectively integrating transformative legal technologies into their operations.

As co-founder and CEO of Legal Intelligence Ltd., David is pioneering the utilisation of Generative AI, Machine Learning, and Robotic Process Automation to demystify advanced technologies for Litigation Funders and Law Firms. His vision is to craft a suite of powerful AI assets that provide clients with a formidable competitive edge, simplifying complex processes and empowering them to excel in a highly competitive environment.

Beyond his professional achievements, David is a devoted family man, enjoying quality time with his partner and two sons. Beyond his professional life and proud patron of The Prince's Trust, dedicating time to charitable causes. Recently, he ventured into farming by purchasing a farm, and is enthusiastically navigating the steep—and often muddy—learning curve that comes with rural management.

Company Profile: Legal Intelligence Ltd

At Legal Intelligence, our mission is to empower legal firms and litigation funders to expand and innovate in a risk-managed environment. Our expert team, comprising AI, software, and data science specialists alongside seasoned professionals in litigation and finance, excels in developing and deploying cost-effective AI solutions that transform inefficiencies into robust efficiencies at scale.

Our clients benefit from rapid capital deployment, streamlined client onboarding, and unparalleled book-building capabilities. Automation drives our processes, ensuring reduced overheads and top-tier operational and customer service delivery, allowing our clients to scale confidently and maintain service excellence.

Understanding the economic dynamics of litigation funding and their partnered law firms has led us to develop a unique cost model for our suite of AI tools. We align our model with the risk and reward dynamics often seen in funded arrangements, truly partnering with our clients—your success is indeed our success.

Legal Intelligence is setting new standards for excellence and innovation in the legal sector. Let us be your partner in driving digital transformation. Together, we'll redefine what's possible in the legal industry, achieving outcomes that are efficient, risk-aware, and client-focused.

Welcome to the future of litigation—and yes, we're really nice people too!

Websitewww.legalintelligence.ai

"Generative AI is not about replacing human expertise but enhancing it. Our suite of AI assets ensures a seamless integration of human judgment with advanced AI capabilities, providing a synergy that is unmatched in the industry," says David Harper.

Year Founded: 2024
Headquarters: London and Gateshead, operating globally.
Area of Focus: Legal Technology and AI Outsourcing Solutions

Carpentum Capital Launches Aurigon Litigation Risk Consulting (LRC)

The team around former Carpentum Capital has launched AURIGON LITIGATION RISK CONSULTING (LRC), a litigation funding intermediary based in Switzerland with a special focus on Latin America. 

Founder and Managing Director Dr. Detlef A. Huber comments: ”AURIGON LRC is combining two worlds, litigation finance and insurance. Both areas are increasingly overlapping. Insurers offer ever more litigation risk transfer products and funders recur to insurance to hedge their risks. Hence complexity and advisory requirements are increasing, especially in still developing markets like Latin America. With our team of lawyers and former re/insurance executives trained in Latin America, the US, UK and Europe we are perfectly suited to advice our clients in any stage of the funding process or in related insurance matters. Our goal is to become the preferred partner for litigation and arbitration funding projects out of Latin American jurisdictions and I am looking forward to this new adventure.”

ABOUT AURIGON

AURIGON Advisors Ltd. is operating as re/insurance consultancy since 2011 with a special focus on dispute resolution and auditing. With AURIGON LRC an intermediary for litigation funding has been launched servicing our clients out of Argentina, Chile, Brazil and Switzerland in Spanish, English, Portuguese and German. With our experience setting up the first Swiss litigation fund dedicated to Latin America (founded 2018), and in the insurance advisory area (since 2011), we are bringing together knowledge of processes and mindsets of the funding and the insurance world. 

An LFJ Conversation with Neil Purslow

Neil Purslow co-founded Therium in 2008 and is a director of Therium Capital Management Limited and the firm’s Chief Investment Officer. Neil is a solicitor with over 26 years’ experience and was previously Litigation Counsel in-house for Marsh & MacLennan Companies, Inc. (MMC). Prior to this he was in practice in the City of London with US firm Reed Smith and Withers. Neil is Chair of the Executive Committee and on the management committee of ILFA, he is also a board member of the Association of Litigation Funders, the self-regulatory body for the litigation funding industry in England and Wales. Neil has given expert evidence on litigation funding and speaks regularly at conferences and is often quoted in the media on issues related to the industry and asset class. He gained an MA in Jurisprudence from the University of Oxford (1995). Neil Purslow was ranked as a Tier 1 individual in litigation finance by Chambers and Partners, Leaders League, Law Dragon and other directories. Below is our LFJ Conversation with Neil Purslow: As the PACCAR situation continues to develop, how do you think this will ultimately play out?  Will the litigation funding industry face enhanced regulation in the UK going forward? The steps the Government has taken in response to PACCAR have been very positive and reaffirm the Government’s recognition of the importance of the litigation funding industry in supporting access to justice and the UK legal sector. The Litigation Funding Agreements (Enforceability) Bill (LFA Bill), which is presently going through Parliament, will reverse the PACCAR decision and reestablish the Government’s original policy intent, ensuring continued access to third-party funding in the UK.  The Bill is expected to be passed before the summer recess at the end of July. The benefits of funding were highlighted throughout the recent debate on the Bill in the House of Lords, in particular that funding enables access to justice and upholds the rule of law, enabling ordinary individuals and SMEs to bring claims against better resourced companies and institutions, such as the Post Office. Several Lords even made the point that funders’ returns were fair, given the significant risks involved in funding litigation, especially against large and deep pocketed defendants. This week, the Civil Justice Council (CJC) published the terms of reference for its review of third party litigation funding. It is extremely encouraging that the CJC is committed to making litigation funding more accessible in order to improve access to justice and fairness for all, so that claimants like the sub-postmasters, can seek redress against large corporations.  The litigation finance industry shares that aim. Whatever the outcome of the review, regulation will need to align with the government’s goals of furthering access to justice. The risk with any regulatory regime is that it can have unintended consequences, which could ultimately disadvantage claimants by limiting the availability of funding and curtailing access to justice. How should the industry respond to calls for regulation? Some stakeholders are suggesting that litigation funders should lead the charge here. Do you agree or disagree, and why?  The industry has always taken a proactive approach to regulation through the UK’s Association of Litigation Funders (ALF) and its Code of Conduct which has been influential in setting standards in litigation funding, both for members and non-members alike in the UK and elsewhere.  Litigation funders are already subject to Court’s oversight.  The industry has nevertheless rightly welcomed the CJC review as an opportunity to take a fresh look at the sector and the positive role that it plays in the legal system and how the review can improve access to litigation funding. Consistent with many of the speeches in the House of Lords on the LFA Bill as well as the CJC’s stated objective, the starting point for the review must be the recognition that in the absence of legal aid and with the high cost of litigation, litigation funding is an important and essential tool to provide access to justice.  Any proposals arising from the review should promote the potential for litigation finance to perform that role. The review of the industry provides an opportunity to examine any other changes that would improve the availability of funding to claimants and also deliver better financial outcomes for claimants in litigation.  For instance, empowering the Courts to order defendants to pay successful claimants’ funding and insurance costs would result in significantly improved financial outcomes for claimants and disincentivise the defence strategy of running up costs to stifle claims, seen so starkly in the Post Office litigation. Any regulatory proposals should seek to address a problem and there should be clear evidence that such a problem exists.  Self-regulation of the industry has worked well in practice for over 10 years and litigation finance arrangements have many checks and balances already built in, not least the involvement of lawyers advising claimants on their litigation funding arrangements.  There is an important role for the International Legal Finance Association (ILFA) and the ALF to provide the CJC with an understanding of how claims are funded in practice. Any proposal for regulation must also be workable and effective.  The industry witnessed the impact of the clumsy and inappropriate regulation brought in by the Liberal government in Australia which significantly impeded the proper functioning of the industry for a period until the regulation was withdrawn.  The UK should be wary of falling into that trap. ILFA and ALF are ideally placed to assist the CJC in understanding the practice of litigation finance and the opportunities that exist to make the best use of its potential in upholding the rule of law.  Both organisations will work constructively with policy makers to ensure that the review supports greater access to justice for consumers and SMEs and maintains the UK’s place as a leading global legal centre. Has PACCAR influenced your investment thesis at all? Are you adapting your underwriting standards in any way - either in the UK, or globally?  In common with the entire UK market, Therium has had to take steps as far as possible to mitigate the potential effects of PACCAR.  That in itself has been time consuming and there has been opportunistic satellite litigation which has both wasted Court time and cost money.  The LFA Bill however will restore the pre-PACCAR position for both existing and future funding arrangements, which will remove the uncertainties that PACCAR has created and restore the ability of funders to offer funding to as many cases as possible.  It also preserves the viability of the CAT collective proceedings regime, which is reliant on funding. The Government’s response to PACCAR has demonstrated that it understands and values the benefits that the litigation finance sector brings and that it reinforces the attractiveness of the UK as a jurisdiction in which to invest.  From a public relations perspective, what more can the industry do to convince legislators and the general public that litigation funding is ultimately a force for positive change in the world?  The Post Office scandal has been an important example of how civil litigation can play a pivotal role in righting a huge miscarriage of justice. In turn, the media coverage has been a game changer in increasing awareness of the vital role that litigation finance plays in providing access to justice.  That example continues to resonate with the public and with legislators, with its effects felt both domestically and also internationally. ILFA plays an essential role in helping legislators and policymakers to understand litigation finance and in countering misinformation about the industry pedalled by corporate lobbyists such as the US Chamber of Commerce and their proxies like Fair Civil Justice and its forerunner, Justice Not Profit, which unsuccessfully tried to derail the introduction of the collective proceedings regime in the CAT in 2015. Their objective is to limit access to justice and frustrate litigation against big corporate wrongdoers. It is also important that the benefits of litigation funding to upholding the rule of law are appreciated more widely. Lord Sandhurst made the point in the House of Lords that the absence of legal remedies damages our economic system and the society in which we live.  Finding funding mechanisms to achieve legal remedies for individuals and small and medium sized businesses who do not have the resources to achieve this is of social value and in the public interest. Being able to enforce legal rights is essential for a functioning market economy.  According to Bain and Co’s Transatlantic Confidence Index, the rule of law remains one of the most appealing reasons to invest in the UK. At an event at Gray’s Inn that was supported by The Law Society and the Bar Council, Shadow Justice Secretary, Shabana Mahmood made her first major speech since assuming the role in which she expressed her desire for the UK be home to the fastest growing legal sector in the world. The availability of litigation funding will undoubtedly help to ensure that the UK retains its position as a leading global disputes hub that currently contributes £34 billion to the UK economy each year.

Key Highlights from the Inaugural LF Dealmakers European Edition

Last week, the LFJ team attended the inaugural LF Dealmakers European Edition, held across two days at the Royal Lancaster in London. Building on the longstanding success of Dealmakers’ New York event, the first edition of the European conference brought together an impressive selection of leaders from across the industry.

Spread across two days, LF Dealmakers featured an agenda packed with insightful conversations between some of the most prominent thought leaders in the European litigation finance market. An array of panel discussions covered everything from the looming potential of regulation to the increasing corporate adoption of third-party funding, with these sessions bolstered by a keynote interview between two of the key figures in the Post Office Horizon litigation.

A long road to justice for the postmasters

In a conference that managed to fill every single panel discussion with speakers engaged in some of the largest and most influential funded disputes taking place in Europe, the standout session of the two days provided unparalleled insight into one of the most famous cases of recent years. The keynote interview on ‘The Future of Litigation Funding in the Wake of the Post Office Horizon Scandal’ saw James Hartley, Partner and National Head of Dispute Resolution Freeths, and Neil Purslow, Founder & CIO, Therium, offer up a behind-the-scenes tale of the sub-postmasters campaign for justice.

Going back to their first involvement with the case, James Hartley reminded attendees that whilst those looking at the case post-judgement “might think it was a slam dunk”, this was not the viewpoint of the lawyers and funders who first agreed to lead the fight against the Post Office. As Hartley described it, this was a situation where you had “a government owned entity who would fight to the end”, with a multitude of potential issues facing the claimants, including the existence of criminal convictions, the limited amounts of documented evidence, and the fact that the Post Office was the party that had ninety percent of the data, documents, and evidence.

Hartley also offered his own perspective on the legal strategy adopted by the Post Office and its lawyers, noting that at every stage of the litigation, “every single issue was fought hard.” He went on to explain that whilst he was “not critical” of the defendant’s strategy in principle, there remains the underlying issue that “the arguments they made were not consistent with the evidence we were seeing.” Hartley used this particular point to illuminate the issues around defendant strategies in the face of meritorious litigation that is being funded. He summarised the core issue by saying: “There is nothing wrong with fighting hard, but it’s got to be within the rules, and in a way that helps the court get to a just outcome.”

Offering praise for the support provided by Purslow and the team at Therium to finance the case, Hartley stated plainly that “without Therium’s funding it would not have gone anywhere, it would not have even got off the ground.” Both Purslow and Hartley also used the case to highlight problems around the lack of recoverability for funding costs and how that incentivises defendants such as the Post Office to prolong litigation and inflate legal costs. Hartley said that he would welcome a change to rules that would allow such recoverability, arguing that in this case “it would have neutralised the Post Office’s strategy to just keep driving up costs on the claimants side.”

What problem is regulation solving?

It was unsurprising to find that questions around the future of regulation for the litigation funding industry were a regular occurrence at LF Dealmakers, with the event taking place only a few days on from the House of Lords’ debate on the Litigation Funding Agreements (Enforceability) bill. From the opening panel to conversations held in networking breaks between sessions, speakers and attendees alike discussed the mounting pressure from government and corporate opponents of third-party funding.

The view from the majority of executives at the event seemed to revolve around one question, which was succinctly put by Ben Moss from Orchard Global: “What are the specific issues that require regulation, and what is the evidence to support those issues?”

This question became somewhat of a rallying cry throughout the conference, with suggestions of increased scrutiny and oversight being turned back on the industry’s critics who make claims of impropriety without citing evidence to back up these claims. Whilst several speakers referenced the recent LFJ poll that found a broad majority are open to the potential for new regulation, Ben Knowles from Clyde & Co described a lot of the discourse around the issue as “a fairly partisan debate.”

Among the few speakers in attendance who offered a contrasting view on regulation, Linklaters’ Harriet Ellis argued that “regulation done right would be good for the industry.” However, even Ellis acknowledged that any rules would have to be carefully crafted to provide a framework that would work across the wide variety of funded disputes, saying that a “one size fits all approach does raise issues.”

Regarding the government’s own approach to the issue through the draft legislation making its way through parliament, all of the executives in attendance praised lawmakers’ attempts to find a solution quickly. Alongside these government-led efforts, there was also a feeling among legal industry leaders that funders and law firms have to be part of the solution by promoting more education and understanding about how litigation finance works in practice. Richard Healey from Gately emphasised the need for firms to engage in “hearts and minds work” to change wider perceptions, whilst Harbour’s Maurice MacSweeney emphasised the need to “create the environment where law firms and funders can flourish.”

Innovation through collaboration

Outside of the narrow debate around legislation and regulation, much of the conference was focused on the speed at which litigation finance continues to evolve and create new solutions to meet complex demands from the legal industry. This was perhaps best represented in the way speakers from a variety of organisations discussed the need for a collaborative approach, with executives from funders, insurers, law firms, investors and brokers, all discussing how the industry can foster best working practices.

The interplay between the insurance and funding industry was one area that offered plenty of opportunity for insightful discussions around innovation. Andrew Mutter from CAC Speciality noted that even though “insurers are not known for being the fastest and moving the most nimbly,” within the world of litigation risk “the insurance markets are surprisingly innovative.” This idea of an agile and responsive insurance market was backed up by the variety of off the shelf and bespoke products that were discussed during the conference, from the staples of After-The-Event and Judgement Preservation Insurance to niche solutions like Arbitration Default Insurance.

Delving into the increasingly bespoke and tailored approach that insurers can take when working with funders and law firms, Jamie Molloy from Ignite Speciality Risk, described how there are now “very few limits on what can be done by litigation insurers to de-risk.” Whilst there is sometimes a perception that insurers are competing with funders and lawyers for client business, Tamar Katamade at Mosaic Insurance offered the view that it is “more like collaboration and synergy” where all these parties can work together “to help the claimant and improve their cost of capital and reduce duration risk.”

Class action fervour across Europe

Throughout both days of the LF Dealmakers conference, the volume and variety of class actions taking place across the European continent was another hot topic. However, in contrast to an event focused on the American litigation finance market, the common theme at last week’s forum was the wideranging differences between large group claims across individual European jurisdictions. In one of the most insightful panels, the audience were treated to an array of perspectives from thought leaders practicing across the UK, Spain, and the Netherlands.

The example of Spanish class actions provided an incredibly useful view into the nuances of European claims, as a country that is still in the process of implementing legislation to comply with the EU’s collective actions directive, but has already evolved routes for these types of actions over the last decade. Paul Hitchings of Hitchings & Co. described how the initiative to innovate has come “more from the private sector than the legislature”, with domestic law firms having become “experienced with running massive numbers of parallel claims” as an inefficient, yet workable solution. Hitchings contrasted Spain’s situation with its neighbouring jurisdiction of Portugal, which he argued has been comparatively forward thinking due to the country’s popular action law.

Speaking to the Dutch class actions environment, Quirijn Bongaerts from Birkway, argued that the “biggest game changer” in the country was the introduction of a real class actions regime in 2020. Bongaerts explained that the introduction of this system allowed for “one procedure that fits all types of claims”, which allows not only claims for damages, “but also works for more idealistic cases such as environmental cases and ESG cases.”

LFJ would like to extend our thanks to the entire Dealmakers team for hosting such an engaging and insightful event, which not only offered attendees a view into the latest developments in litigation finance, but also created a plethora of networking opportunities throughout both days. LFJ has no doubt that after the success of the inaugural LF Dealmakers European edition, a return to London in 2025 will cement the conference as a must-attend feature in the litigation funding events calendar.