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An Argument for Reforming the Principle of Non-Recoverability

While the availability of, and access to, litigation funding has been a boon for those seeking access to justice, some industry insiders argue that reforms have not gone far enough, and that more change is needed. One area of interest is recoverability for plaintiff costs, where currently claimants still stand to lose financially in order to cover the costs of the very funding that has allowed them to access justice.

Writing for The Law Society Gazette, managing director of LionFish, Tets Ishikawa, argues that where defendants have been proven to have harmed plaintiffs, it is right and just that they recoup the costs for an action caused by the defendant’s wrongdoing. He argues this is doubly true in cases where the defendant prolongs proceedings through inaction or failure to properly handle proceedings, thereby causing claimant’s costs to rise; as is true in the case of Cabo Concepts Ltd v MGA Entertainment.

Ishikawa also acknowledges that reform should not mean recoverability would be available in all commercial litigation matters, but that it should still be at the liberty of the court to make such determinations on a case-by-case basis. He points out that the basis behind non-recoverability is now outdated, and fundamentally misaligned with the principles of widening the avenues to legal redress that litigation funding is supposed to provide.

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Pogust Goodhead Targets BHP in £1.3B Conspiracy

International plaintiffs’ firm Pogust Goodhead has opened a fresh front in the marathon litigation over the 2015 Fundão dam collapse, dispatching a pre-action letter that accuses BHP, Vale and their joint-venture Samarco of orchestrating an unlawful plot to sabotage the English proceedings.

Acting through U.S. counsel Orrick, the firm says the miners induced claimants to sign cut-price settlements in Brazil, interfered with existing retainers and weaponised redress programmes run by the Renova Foundation to starve the London group action of participants. Pogust Goodhead pegs its damages at more than £1.3 billion—roughly the fees and uplifts it stands to lose if the 620,000-strong claimant cohort is picked off piecemeal.

An article in Reuters says the firm will argue three causes of action—unlawful means conspiracy, inducement of breach of contract and enforcement of its equitable lien—and blames the defendants’ constitutional challenge in Brazil (ADPF 1178) and the proposed “Repactuação” mega-settlement for the intensified pressure campaign.

The pre-action salvo lands just months after the close of a 13-week liability trial against BHP in London; judgment is due later this year, with a quantum phase already on the docket for 2026. Separately, Vale and BHP confront contempt allegations for allegedly funding satellite litigation to derail municipal claims. Should the new claim proceed, the miners could face parallel exposure not only for compensatory payouts—estimated at up to £36 billion—but also for the law firm’s lost fees and financing costs, which Pogust Goodhead says now exceed $1 billion.

Uncorrelated Capital Debuts With $53M for Litigation Finance

By John Freund |

A new entrant has jumped into the U.S. legal-finance arena.

National Law Review reports that Uncorrelated Capital has closed a $53 million seed round, backed by a private-credit fund and a leading plaintiffs’ law firm. Founder Miles Cole—a two-time tech entrepreneur—says the firm will “invest alongside law firms as partners” rather than lend against fees, aligning incentives to “drive better outcomes for plaintiffs.” The firm has already deployed “tens of millions” across thousands of claims, including high-profile mass-tort dockets such as Camp Lejeune.

Uncorrelated’s thesis is to marry software and data analytics with long-duration capital, targeting “uncorrelated” return streams that behave independently of broader markets. Cole argues that litigation finance remains “underserved by technology” and plans to build proprietary tooling to vet cases, monitor portfolios and streamline reporting. The launch comes as institutional money continues to flow into alternative credit strategies and amid renewed regulatory scrutiny of third-party funding structures on Capitol Hill.

For the legal-funding industry, Uncorrelated’s arrival underscores two trends: first, that smaller, tech-forward managers can still raise meaningful capital despite the dominance of well-funded incumbent players; second, that plaintiff-side firms remain eager for non-recourse capital partners who can shoulder risk without dictating strategy. Whether Uncorrelated’s data-centric model will gain traction—or push incumbents to up their own tech game—bears watching. Future fundraising rounds and case wins will reveal if the firm’s “software-first” pitch delivers outsized returns or simply adds another niche player to an increasingly crowded field.

LFJ Podcast: Stuart Hills and Guy Nielson, Co-Founders of RiverFleet

By John Freund |

In this episode, we sat down with Stuart Hills and Guy Nielson, co-founders of RiverFleet, a consultancy business specialising in the global Legal Finance market.  

RiverFleet works with clients to help navigate the complexities and idiosyncratic characteristics of the Legal Finance market and make the most of the financial opportunities and risk solutions the market has to offer for business and investment. 

RiverFleet has a highly experienced team, with specialist litigation, finance and structuring, and investment and portfolio management expertise.  They offer a broad range of legal finance services tailor-made for a global client base, including investors, litigation finance funds, claimants, corporates, insolvency practitioners and law firms.

Watch the episode below:

https://www.youtube.com/watch?v=qb1ef7ZhgVw