Trending Now

John Freund's Posts

3281 Articles
Announcements Case Developments Commercial

Geradin Partners Announces Class Action Claim Brought Against Google by UK Android App Developers

By Harry Moran |

Today a leading competition law expert, Professor Barry Rodger, has filed a legal claim worth up to £1.04 billion against Google before the UK Competition Appeal Tribunal (“CAT”). Google is accused of abusing its dominant position to the detriment of a large class of thousands of UK app developers who need to use its app marketplace, ‘Play Store’ or ‘Google Play’, to access their customers. The class action lawsuit seeks compensation for the losses in revenues suffered by those individuals and businesses, many of whom are SMEs, from August 2018 onwards. 

Professor Rodger alleges that Google has used a variety of technical and contractual restrictions to ensure that Google’s Play Store is the only place where UK app developers can market or sell apps designed for Android devices. The result is that UK app developers have little choice other than to use the Google Play Store if they want to reach a wide audience. Google has then used its dominant position in app distribution to require developers to pay excessive and unfair commissions (of up to 30%) on all their sales of digital content to customers. Professor Rodger claims that absent the combination of exclusionary and exploitative conduct, app developers would have paid less to distribute their apps and sell their digital content. 

Professor Rodger’s action follows significant litigation and regulatory scrutiny of Google’s Play Store conduct around the world, including by the European Commission, the UK’s Competition and Markets Authority and the US Congress. 

A class action is needed in the present case because UK app developers would not individually have the means to each bring claims against Google. The UK’s opt-out class action regime in the CAT provides a mechanism by which these app developers can legitimately seek damages for the harm they have suffered as a result of Google’s conduct. 

Professor Rodger’s claim is backed by a legal team composed of competition litigation and digital markets specialists, Geradin Partners and a counsel team of Robert O'Donoghue (Brick Court Chambers), Daniel Carall-Green (Fountain Court Chambers) and Sarah O’Keeffe (Brick Court Chambers). The claim also relies on the expertise of Professor Amelia Fletcher CBE, Professor of Competition Policy at the University of East Anglia, who has been assisted in preparing her economic report by a team of economists at Fideres. The claim is funded by Bench Walk Advisors, a leading litigation funder with a team of multi awardwinning finance professionals and litigators. 

Professor Rodger said: “It is extremely important that the principles of fairness and equality of opportunity underlie our rapidly expanding digital economy by ensuring effective redress for those harmed by any abusive anti-competitive behaviour in the marketplace. I am bringing this claim because I believe that Big Tech businesses like Google should not be allowed to run roughshod over small businesses. I teach my students every day about the importance of enforcement of competition law and I am now ‘practising what I preach’ by seeking redress in the form of compensation for significant business damage suffered by this class of Android app developers.” 

Founding Partner of Geradin Partners, Damien Geradin, said: “Google is one of the most powerful companies in the world. Regulators around the globe have scrutinised its Play Store conduct and consider it harmful. Yet Google continues to use its monopoly position to force out competition and to exploit app developers. It is imperative therefore that developers in the UK also have the opportunity to seek redress for Google’s wrongful conduct.” 

More information on the claim and regular updates for the proposed class can be found at: www.googleplaystoredeveloperclaim.com.  

Announcements Commercial People Moves

McDonald Hopkins’ Litigation Finance Group welcomes seasoned attorney to its powerhouse team

By Harry Moran |

McDonald Hopkins is proud to welcome John J. Hanley as a Member in the Business Department and the Litigation Finance Practice Group. John brings with him years of experience, a proven track record of success and an innovative spirit that will play a pivotal role at the firm.

“McDonald Hopkins is a great brand in the litigation finance space.” said John. “The goal here is to capture market share. We will continue to be among the best and most active in the litigation finance space, and I’m excited to contribute to it.”

John specializes in litigation finance and complex financial transactions. He has over two decades of extensive experience from highly esteemed East Coast law firms in first and second lien financings, private debt and equity placements, acquisition and sale of loans, securities, trade claims, and other illiquid assets. His clientele includes a diverse array of financial entities, such as litigation funders, business development companies, specialty lenders, investment banks, hedge funds and others. He attributes his success in the field to his client-focus and the way he approaches complex matters.

“I identify as a part of the client’s team. I use terminology like ‘our position,’ ‘our claims,’ ‘our proceeds,’ and I mean it. It may seem small, but I think it strikes a chord and makes a difference,” John noted.

John’s arrival is a strategic step in building upon the success and influence the Litigation Practice Group has achieved. His addition bolsters a powerhouse team of attorneys, including Marc Carmel and Edward Reilly, who have deep experience in this field. This addition aligns with the group’s recent Chambers ranking, which recognized it as one of five firms ranked in the 2024 Chambers Litigation Support Guide for Litigation Support Deal Counsel (USA-Nationwide) and Marc Carmel as one of eight attorneys ranked individually.

“With John, we truly are positioned to offer unparalleled expertise and service in the litigation finance realm. This not only affirms our leadership in the field but also demonstrates our ongoing dedication to expanding and enhancing the support we provide to our clients. We believe no other middle-market practice matches the scope of our engagements, and John’s arrival shows that the best in the business want to be here. We are thrilled to have him on the team,” said Marc Carmel, Chair of the Litigation Finance Practice and Managing Member of McDonald Hopkins’ Chicago office.

David Gunning, the Chair of McDonald Hopkins’ Business Department echoed Carmel’s sentiment.

"John is an invaluable addition to our Business Department,” said David Gunning, the Chair of McDonald Hopkins Business Department. “His experience will not only strengthen our Litigation Finance Group but will also enhance our broader finance capabilities. We’re excited to have John on board as we continue to grow our department and provide exceptional service to our clients across all areas of finance.”

John will be mostly remote from his home in New Jersey, but will be working closely with McDonald Hopkins’ Chicago office.

Community Spotlights

Community Spotlight: Boris Ziser, Co-Head of Finance Group, Schulte Roth & Zabel

By Boris Ziser |

Boris Ziser is a partner and co-head of Schulte Roth & Zabel’s Finance Group, where he advises on a diverse range of asset classes and transactions such as asset-backed lending and securitization, warehouse facilities, secured financings, specialty finance lending and esoteric finance transactions. Boris manages the London finance practice and the global litigation funding and law firm finance practice.

With almost 30 years of experience, Boris works on a variety of asset classes, including life settlements, litigation funding, equipment leases, structured settlements, lottery receivables, timeshare loans, merchant cash advances and cell towers, in addition to other esoteric asset classes such as intellectual property, various insurance-related cash flows and other cash flow producing assets. He also represents investors, lenders, hedge funds, private equity funds and finance companies in acquisitions and dispositions of portfolios of assets and financings secured by those portfolios.

Company Name and Description: With a firm focus on private capital, Schulte Roth & Zabel LLP is comprised of legal advisers and commercial problem-solvers who combine exceptional experience, industry insight, integrated intelligence and commercial creativity to help clients raise and invest assets and protect and expand their businesses. The firm has offices in New York, Washington, DC and London, and advises clients on investment management, corporate and transactional matters, and provides counsel on securities regulatory compliance, enforcement and investigative issues.

Company Website: https://www.srz.com/

Year Founded: 1969

Headquarters: New York, New York, U.S.A.

Area of Focus: Finance, Litigation Finance, Private Credit, Structured Finance

Member Quote: "With its uncorrelated investment opportunity and plethora of rules that vary by jurisdiction (State-by-State and international), litigation funding is a complicated asset class that is rewarding at the same time, as it enables those with meritorious claims, but without the necessary resources, to pursue justice."

Case Developments Commercial

Court House Capital Funding Class Action Against Jetstar

By Harry Moran |

Over the last two years there has been a quiet yet consistent trend of legal action arising over alleged malpractice by companies and institutions during the Covid pandemic, with funders often stepping up to provide the financial backing necessary for claimants in their pursuit of justice.

An article in The Guardian covers the latest high profile example of such a case, with Jetstar Airways facing a class action over its alleged failure to fulfil its legal obligations to refund passengers for flights cancelled during the pandemic. The claimants are being represented by Echo Law with funding for the class action provided by Court House Capital.

Andrew Paull, partner at Echo Law, said that instead of providing refunds as outlined in the airline’s terms and conditions, “Jetstar customers were pushed into holding hundreds of millions of dollars in restricted travel credits.” This class action follows separate legal proceedings filed last year by Echo Law against Jetstar’s owner, Qantas, over the parent company’s own use of travel credits in place of a full and proper refund policy.

The Guardian’s article quotes a statement from Jetstar in response to the class action, with the airline saying it would review the claims and also explained that last year it had “removed expiry dates for Covid vouchers so they can be used indefinitely”.

Case Developments Commercial

Woodsford Funds Australian Class Action Targeting Isuzu Motors

By Harry Moran |

In the world of ESG-related litigation, one of the areas which is a hotbed of activity is the alleged use of emissions defeat devices by car manufacturers, with vehicle owners seeking compensation over these companies’ breach of environmental and consumer rules.

Reporting in Australasian Laywer covers the news that Woodsford is providing litigation funding for an Australian class action being brought against Isuzu Motors Limited, a Japanese car manufacturer. Woodsford has partnered with Piper Alderman who are providing legal representation for the class members, with the case focused on allegations that Isuzu installed defeat devices vehicles which it sold in Australia.

The class action was filed last week in Federal Court, with the claimants alleging that Isuzu did not accurately comply with diesel emissions standards in violation of Australia’s approval regime for vehicles. The legal case centres around an alleged breach of Australian Consumer Law, with the vehicle owners seeking compensation over the company’s misrepresentation of its compliance with the aforementioned regulations.

Martin del Gallego, partner at Piper Alderman, explained that the “class action alleges that Isuzu has sought to circumvent Australia’s rigorous emission standards by deploying ‘defeat devices’ in certain of its D-Max and MU-X vehicles, causing them to emit NOx pollutants in normal driving conditions at higher than permitted levels.” 

Charlie Morris, chief investment officer at Woodsford, situated this class action brought against Isuzu as one “in an increasingly long line of legal actions across the globe relating to what appears to have been a common practice among diesel vehicle manufacturers of deceiving regulators and customers regarding emissions.”

This is not the only case of its kind that Piper Alderman has filed, having already brought a class action against Mercedes-Benz for the use of these defeat devices in its vehicles.

Announcements Commercial

Thomson Reuters Acquires Safe Sign Technologies to Accelerate its AI Strategy

By Harry Moran |

Thomson Reuters (TSX/NYSE: TRI), a global content and technology company, today announced it has acquired Safe Sign Technologies, a UK-based startup that is developing legal-specific large language models (LLMs).

“This acquisition marks another milestone on our journey to combine our trusted content and world-class domain experts with our cutting-edge technology. Based on our internal assessment, we believe Safe Sign’s models have demonstrated industry-leading performance across a number of domain-specific evaluations. We believe that coupling them with our industry-leading content and expertise will help us deliver greater quality and performance from our AI solutions,” said Joel Hron, Chief Technology Officer, Thomson Reuters. “We expect this acquisition to help accelerate our ability to provide our customers with a professional grade AI experience through the CoCounsel AI Assistant – the company's genAI assistant – that enables professionals across industries to accelerate and streamline their workflows.”

“We believe Safe Sign Technologies has been at the cutting edge of legal AI research since 2022, achieving significant progress in its goal to create the world’s best proprietary legal LLM. Safe Sign’s world-leading team—drawn from Cambridge, DeepMind, Harvard and MIT—is pleased to join with Thomson Reuters to become a major scientific and industrial disrupter in legal AI,” stated the Safe Sign Technologies leadership team, Alexander Kardos-Nyheim and Dr. Jonathan Schwarz.

Alexander Kardos-Nyheim, founder and CEO, founded Safe Sign Technologies in February 2022. He was joined by leading Cambridge Law and AI professors and researchers. Kardos-Nyheim’s team expanded, most notably with the arrival in late 2023 of Dr. Jonathan R. Schwarz, who became the company’s co-founder and chief scientist. Schwarz brought with him world-leading AI expertise, drove the company’s LLM strategy and enabled the company to achieve world-class legal LLM performance. The Safe Sign Technologies team will report directly to Hron and will be working closely with the Thomson Reuters Labs team. To learn more about Safe Sign Technologies and its team, visit the Safe Sign Technologies website.

Thomson ReutersThomson Reuters (TSX/NYSE: TRI) (“TR”) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth, and transparency. Reuters, part of Thomson Reuters, is a world-leading provider of trusted journalism and news. For more information, visit tr.com.

Announcements Commercial People Moves

Nera Capital Appoints New Global CFO 

By Harry Moran |

A specialist Litigation Funder which has offices in Manchester, Dublin and The Netherlands, has appointed an internationally renowned finance executive as its new Chief Financial Officer (CFO).

Finance veteran, Robin Grant, has joined Nera Capital bringing over 25 years’ experience in dealing with various asset classes and investment strategies. 

As a long-standing chartered accountant, Mr Grant explained that he has gained extensive UK and international experience with large firms through to start-ups and is now delighted to join the team at Nera Capital.

“The company has always been successful, and at the moment it is on a steep growth curve which makes Nera Capital increasingly attractive to additional institutional investors,” he said. 

“The firm has an exceptional business model where pursuit of justice for the benefit of claimants is at the heart of everything it does while also generating superior risk adjusted returns for our investors. It’s a win-win for everyone except the corporate wrongdoers.

“I’m very pleased to be at Nera and aim to make a positive contribution as part of the management team.”

Mr Grant added that Nera Capital's success is due to the team working quickly to undertake due diligence, understand the return proposition and do the work needed to get claim strategies into an investable position.

“Once we get there, we move very quickly to deploy funds and aggressively manage the litigation process to get the claims in a position where we can start settling them,” he added.

“The professionalism of the team is unrivalled; this is a team with a strong proven track record.

“They’ve done it for years, they’re all from high-quality institutional, backgrounds and they’re all really passionate about what they do, it’s a very exciting time for the team.”

Reflecting on his own career, Robin explained: “My journey after I left university began with three hard years training to be a chartered accountant with BDO in London.

“It’s an exciting sector to be involved in with lots of challenges and its these that make it enjoyable.” With a craving to earn international finance experience after his qualification in London, Mr Grant boarded a plane to Bermuda and spent the next five years gaining exposure to banking, captive insurance and hedge fund sectors, having stints with PwC and Lombard Odier.   

Looking back on his time, he explained: “I ended up living in Bermuda for five years and the Cayman Islands for two years before returning to London.

“Once back in the UK I gained further experience with large institutions, I was CFO of GLG Partners’ Fund of Funds division (now part of Man Group PLC) and boutique firms, such as Tabula Investment Management Ltd (now part of Janus Henderson), RS Platou Asset Management (now part of Clarksons PLC) and Quantmetrics Capital.

“These experiences are the grounding for everything I have done since then, and I’ve enjoyed taking that skillset and applying it to my role with Nera Capital.”

Speaking about Mr Grant’s appointment, Director of Nera Capital, Aisling Byrne, said the team were delighted to welcome him aboard and look forward to growing the firm together. 

She said: “This year Nera Capital has been able to expand substantially, while achieving significant milestones with multiple investments around the world and large settlements being also achieved “ 

“We are confident that Mr Grant will be able to guide our team through further growth, while we focus on investment returns and justice in the legal system.” 

About Nera Capital 

·       Established in 2011, Nera Capital is a specialist funding provider to law firms.  

·       Provides Law Firm Lend funding across diverse claim portfolios in both the Consumer and Commercial sector. 

·       Headquartered in Dublin, the firm also has offices in Manchester and Holland. 

·       Member of European Litigation Funders Association

.       www.neracapital.com

Commercial People Moves

CAMG Hires Max Doyle to Lead Funders Program as Chief Strategy Officer

By Harry Moran |

The growth of mass tort cases has created plenty of opportunities for law firms, funders and legal marketers alike. As this sector continues to generate high levels of activity, CAMG is aiming to offer funders a more streamlined and efficient approach to engage with these opportunities and to manage their investment portfolios.

An article in Bloomberg Law covers the news that the Consumer Attorney Marketing Group (CAMG) has hired Max Doyle, former CEO of LexShares, to lead its funders program. Doyle, who has been appointed as Chief Strategy Officer (CSO), will take on leadership of the program from September as CAMG looks to work directly with funders on their investment strategies for mass tort cases.

In the article, Doyle spoke about the approach he would bring to the program, explaining that he wants to be the person who can “speak in that language with the funders or investors or alternative asset managers or hedge funds or whoever it is, but be able to not start off with the law, but start off with the potential returns.” Doyle acknowledged that these funds have to “manage exposures and get to the bottom of what the risk-adjusted returns look like”, with CAMG aiming “to try and make that a bit easier for them.”

Doyle also highlighted the impact of rules changes around law firm ownership in states such as Arizona and the ways in which it creates opportunities for funders to manage portfolios of cases. As Doyle explained, “funders spend a lot of time ensuring that the collateral is locked down and safe and liens are renewed, so I think there are better ways to structure it.”

In a post sharing the news on LinkedIn, CAMG said:

“At CAMG, we’re not just connecting law firms with plaintiffs—we’re working directly with litigation funders to curate investment strategies and generate high-quality leads. It’s a sign of how funders are becoming increasingly intertwined with marketing as they focus on mass torts.”

Community Spotlights

Member Spotlight:  Lewis Edmonds

By Lewis Edmonds |

Lewis Edmonds is a Director of Fibre Group and is a seasoned financial planner with over 10 years of expertise in cross-border planning, wealth management, and alternative investments. He serves a diverse clientele across the UK, USA, Middle East, Europe, and Latin America, offering tailored solutions that include diversification, wealth creation, and risk hedging strategies. 

Lewis's comprehensive approach ensures clients achieve their financial goals while navigating the complexities of international finance. Lewis manages the group’s portfolio of investment opportunities and fund management providers, whilst assessing new opportunities to enhance the company’s offering. 

Company Name and Description: Based in the United Kingdom, Fibre Group focuses on cross-border payments, cross-border wealth and alternative investment strategies. 

The payments side of the businesses ensures clients have access to highly competitive exchange rates through multi-currency banking solutions, and guidance to manage foreign exchange risk, which is often a significant consideration for international property transactions and cross-border wealth matters. 

Fibre Capital focuses on international wealth management and alternative investment, by providing tailored strategies that are customised to individual goals and risk preferences.

Acknowledging the limitations of conventional banking, Fibre looks beyond public markets and traditional investments to identify solutions that diversity, balance and enhance clients’ portfolios. 

Within the Litigation funding ecosystem, Fibre’s role is to introduce their active and growing client base of investors, to investment opportunities in the litigation funding space, via loan note, corporate bond, or direct investment. 

Company Website: www.fibrepayments.com -- https://fibre.capital

Year Founded:  2021

Headquarters:  London

Area of Focus:  Traditional wealth management and alternative investment strategies for our active client base. 

Member Quote: “In an ever-changing economic landscape, we are actively seeking innovative investment strategies, to ensure the best outcome for our clients and opportunities in litigation financing are increasingly becoming an attractive alternative asset class, for our clients.”

Case Developments Commercial

Class Representative in UK Water Companies Claims Calls for Funding Agreement Legislation

By Harry Moran |

With recent news that the new UK government is set to delay further progress on legislation regarding litigation funding agreements in the wake of PACCAR, there has been an overwhelming response from funders, law firms, and claimants, all arguing that there is no need for such a delay and in doing so, the government may be harming the prospects for claimants seeking justice.

In an opinion piece for City A.M., Carolyn Roberts argues that the lessons learned from the Post Office litigation should be taken onboard by those seeking to hold UK water companies to account for their behaviour. Roberts, an environment consultant and emeritus professor at Gresham College, argues that just as litigation funding was integral to the success of the claim brought against the Post Office, the same mechanism of third-party funding should be leveraged in claims brought against water companies over their alleged wrongdoing.

Roberts highlights the recent fines issued by Ofwat against three UK water companies over their dumping of sewage into public waterways, and goes on to allege that these same companies have been misleading regulators for years “about the extent of sewage discharges into our rivers and coastal areas.” Roberts is the class representative in competition damages claim in the CAT brought against Thames Water, United Utilities, Severn Trent, Anglian Water, Yorkshire Water, and Northumbrian Water. 

As the opt-out claim is being financially backed by Bench Walk Advisors, Roberts’ op-ed emphasises the need for the government to move without delay to introduce legislation to deal with the effects of the Supreme Court PACCAR ruling on litigation funding agreements. Roberts closes the piece by arguing that the government “pick up the baton and ensure access to justice can be preserved for billpayers, like those involved in my claim, as well as individuals and small businesses like the sub-postmasters who rely on litigation funding to hold corporate giants to account.”

Announcements Commercial Legal Innovation

DocPro Secures $500,000 Pre-Seed Investment from Multiway Industries to Drive Legal Tech Innovation 

By Harry Moran |

DocPro Limited, a leading legal technology company, is pleased to announce the successful completion of a $500,000 pre-seed investment round from Multiway Industries. This strategic investment underscores DocPro's commitment to streamlining and enhancing the delivery of legal services through innovative AI-powered solutions.

Advancing Legal Services

Established in 2020, DocPro Limited has been dedicated to making legal services more efficient, accessible, and cost-effective. Through its platforms, DocPro.com and DocLegal.ai, the company leverages cutting-edge artificial intelligence to simplify the creation, customization of legal documents. With over 50,000 registered users worldwide, DocPro.com has become a trusted resource for individuals and businesses seeking reliable legal documentation.

The soon-to-be-launched DocLegal.ai aims to be the most accessible and affordable legal tech solution globally, offering legal documents at prices as low as $2 per document. This initiative will make high-quality legal services readily available to professionals, businesses and individuals alike.

"Our goal is to enhance the delivery of legal services by harnessing AI to make legal processes more efficient and accessible," said Kim Chan, Founder and CEO of DocPro Limited. "This pre-seed investment from Multiway Industries will allow us to accelerate our development efforts, expand our offerings, and improve the overall user experience."

Strategic Growth and Product Development

The $500,000 pre-seed investment will be allocated towards advancing product development, expanding the engineering and AI teams, and implementing go-to-market strategies. DocPro's focus extends beyond document generation, with plans to introduce a comprehensive AI legal assistant service, further enhancing its offerings in the legal tech space.

Investor Confidence

"We are excited to support DocPro in their efforts to enhance legal technology," said Ellie Lee, Managing Director of Multiway Industries. "Their innovative use of AI not only streamlines complex legal processes but also makes legal services more accessible and efficient for businesses like ours."

About DocPro Limited

Founded in 2020, DocPro Limited is a legal technology company dedicated to streamlining the legal industry through AI-powered solutions. As an incubatee under the Cyberport and Hong Kong Science and Technology Parks (HKSTP) incubation programs, DocPro has developed platforms like DocPro.com and DocLegal.ai to empower legal professionals and businesses to create and manage legal documents efficiently and accurately. For more information, visit DocPro.com and DocLegal.ai .

About Multiway Industries

Established in 1978, Multiway Industries is one of the world's largest manufacturers of extension cords, power adaptors, surge protectors, energy-saving programs, and USB chargers. Committed to supporting innovative technology companies, Multiway Industries partners with visionary entrepreneurs to bring transformative solutions to market, making services more accessible and efficient for businesses worldwide.

Commercial Special Features

Key Takeaways from LFJ’s  Virtual Town Hall: PACCAR Revisited

By John Freund |

On Thursday August 15th, LFJ hosted a Virtual Town Hall titled 'PACCAR Revisited.' The live event revisited the PACCAR decision one year later and explored what the future holds for legal funding in the UK and beyond.

Panelists included Ben Knowles (BK), Chair International Arbitration at Clyde & Co LLP, Robert Marven (RM), Barrister at 4 New Square, Nicholas Marler (NM), Head of Technical Underwriting at Litica Ltd, and Neil Purslow (NP), Founder and Chief Investment Officer, Therium Capital Management Limited. The panel discussion was moderated by Tets Ishikawa, Managing Director of LionFish Litigation Finance Limited.

Below are some key takeaways from the event:

We don't hear much from insurers in regard to the PACCAR issue. Nicholas, from an insurer's perspective, what are your thoughts?

NM: The ATE insurers' odyssey through the world of PACCAR is in some ways quite different from that of a litigation funder. At first bluff, you might think that PACCAR doesn't have anything to do with insurers because it has to do with litigation funding agreements, and you'd never catch an insurer signing an LFA, so what's the problem?

If you scratch a little deeper though, the reality is quite different. If you as an insurer, insure a funder, and the funder gives an adverse costs indemnity to the claimant, then all of a sudden, the insurer's contractual fortunes are tied to the funders. If the LFA is unenforceable, then not only can the insurer not collect its contingent premium if there's a success, but the coverage provided to the funder has vanished--this is because the LFA is unenforceable.

We actually had this exact experience play out. An opportunistic claimant sought to cut the funder out, because it felt emboldened to do so as a result of the PACCAR decision. When they were informed that doing so would void their insurance, which was to their benefit, they magically found the goodwill necessary to resolve things with their funder and an amicable solution was quickly found.

You've touched on enforceability. Given how central that is to the heart of the PACCAR issue, Robert, can you share some insights and perspectives on this corse issue?

RM: There are essentially two views on the concept of enforceability. One is that it essentially says there isn't anything wrong with the contract, just that it can't be enforced. There is another view which says that the contract is unenforceable, that it is an illegal contract. I don't agree with that. It seems this is one of the paradoxes of PACCAR, it seems to have rendered unenforceable funding agreements that were perfectly legal under common law.

A lack of enforceability is important to understand as a two-way street. It means the funder cannot enforce, and it also means the claimant cannot enforce. And this is the key to understanding why things have been put right in cases that are still ongoing. A claimant who says to a funder 'I don't have to pay you anymore,' well, a funder could say to the same token, 'I don't have to fund your case anymore.' And we have seen cases that have been over or very nearly over, where the claimants think they don't need the funder anymore and saying 'thank you very much, I needed the funding but I don't have to pay you.' Or 'I did pay you, but I want the money back.'

This is where it's important to remember that enforceability is a two-way street. If all sides want to continue to carry on, then everyone has an incentive in fixing the problem. It's only where those interests converge that seem to have led to a significant litigation dispute.

Ben, from your perspective, how do you think this affects the UKs standing as a legal jurisdiction?

BK: PACCAR created a mess, and it was an expensive mess, irrespective of where we're going to end up. There's been a lot of lawyer's time figuring out what PACCAR means and where we're going to go. The PACCAR fix, as I call it, would have cleared things up to some extend. But the absence of that means some of this uncertainty will continue. And uncertainty means additional costs.

We have these various appeals on the funding agreements out there at the moment. I would expect that in some of these cases, there will be appeals that go to the Court of Appeals, and potentially, all the way up to the Supreme Court. My feeling is, when there's a case to be funded, lawyers will find a way to get that case funded. Although I'd imagine there will be a risk premium attached to that funding, not least because everybody will be getting their funding agreements checked, double-checked and triple-checked. And you may have lawyers who disagree on what's permissible, and that leads to additional costs at the start of the case.

This session is about PACCAR, but we'd be remiss not to talk about the CJC, given how the two issues merge. Neil, you're on the consultation group for the CJC review. Are there any insights you're able to share?

NP: There's now a working party reporting up to the CJC. We're expecting an interim report from that working party to come out in late summer or early autumn, and there will be a consultation, and then the final report in the middle of next year. So we've put on quite a tight timeline.

From an industry perspective, this review is welcome, unless you're opposed to the idea of talking about regulation, which I don't think the industry is. This is a sensible organizational group that is considering these points in a proper and thoughtful way. I would encourage people to get behind the work that ILFA and ALFA are doing here, and I'd also encourage funders to get involved in the consultation phase as well. It's very important that the CJC are thinking about these points with a full and proper understanding of how funding actually works, so they can understand the impact.

I think it's also important that the industry makes sure that the review takes place in a proper context, and by 'proper context' I mean that there is an understanding that funding does have benefits. So the review should look at how good responsible funding can be encouraged and those benefits can be maximized, rather than looking at funding as a suspicious thing that needs to be controlled and is just a risk. I think there is a very positive message for funding that needs to be emphasized, and I think the CJC needs to look at it through this positive lens, and I'm confident that they will.

To view the entire digital event, click here.

Community Spotlights

Member Spotlight:  Daniel Fozard

By Daniel Fozard |

Dan is a founder of the business, but began his career at one of the UK’s largest FX brokerages. He has since built a robust network of partnerships with financial advisors and lawyers, focusing on high-net-worth clients and professionals in sports.

Dan also specialises in supporting trusts and wealth structures with cross-border payments and management of their assets, addressing challenges typically faced with by traditional banks. 

Recognising the demand from clients for interest solutions to complement the multicurrency offering, Dan also focuses on identifying new growth and investment opportunities to enhance the current portfolio and meet clients’ needs. 

Company Name and Description: Fibre Group

Based in the United Kingdom, Fibre focus on cross-border payments, cross-border wealth and alternative investment strategies. 

The payments slide of the businesses ensures clients have access to highly competitive exchange rates through multicurrency banking solutions, and guidance to manage foreign exchange risk, which is often a significant consideration for international property transactions and cross-border wealth matters. 

Fibre Capital focuses on international wealth management and alternative investment, by providing tailored strategies that are customised to individual goals and risk preferences.

Acknowledging the limitations of conventional banking, Fibre look beyond public markets and traditional investments to identify solutions that diversity, balance and enhance clients’ portfolios. 

Within the litigation funding ecosystem, Fibre’s role is to introduce their active and growing client base of investors, to investment opportunities in the litigation funding space, via loan note, corporate bond, or direct investment.

Company Website: www.fibrepayments.com -- https://fibre.capital

Year Founded:  2021

Headquarters:  London

Area of Focus:  Cross-border payments, interest solutions and alternative investment strategies. 

Member Quote: "We are dedicated to delivering the highest service standards by integrating cutting-edge payment technology with innovative interest and investment strategies to achieve the best outcomes for our clients."

Commercial Fundraising

LexShares Cancels Plans for New Fund and Halves Payroll

By Harry Moran |

Although the litigation finance market is regularly touted as a fast-growing sector despite global economic conditions, the protracted timelines and uncertainty inherent in lawsuit investing continues to create hurdles for some funders looking to raise new capital.

An article in Bloomberg Law covers a new development at LexShares, as the litigation funder has reportedly cancelled its planned launch of a new fund and has initiated a reduction of its payroll by half, with the company now consisting of five employees. As the article explains, these employee cuts follow the departure of LexShares’ former CEO Max Doyle in June of this year, with managing director Max Schmidt taking over the leadership of the funder.

Speaking with Bloomberg Law, Schmidt expanded upon some of the difficulties that LexShares is facing in the current market, saying that “the pandemic caused tremendous delays and many cases that we thought would settle or just at least be resolved through the middle and end of 2024 haven’t resolved yet.” However, whilst Schmidt acknowledged that this was a pause in LexShares’ fundraising activity, he expressed hope that this would change in the following two years. As Schmidt explained, “We are still planning to resume our funding efforts when the company can demonstrate sufficient data, when more cases in our portfolio will resolve and when the commercial litigation finance market climate improves.”

Offering some outside commentary on the current state of fundraising in the legal finance market, Rebecca Berrebi, a litigation finance broker and consultant, said that “the industry is having to come to terms a little bit with the fact that duration in these investments is unpredictable and for many funds has been longer than originally expected.”

Commercial People Moves

Emma Colantonio Joins AALF’s Board as Director

By Harry Moran |

In a post on LinkedIn, The Association of Litigation Funders of Australia (AALF) announced a change in its board, with Emma Colantonio replacing Stephen Conrad as director of AALF. Conrad, executive director at Litigation Lending Services (LLS), had been with AALF since 2021, with the association thanking him for his “time, interest and enthusiasm” and praising him as “a true gentleman and friend”.

Colantonio is a senior investment manager in LLS’ Sydney office, with AALF highlighting her “specialist knowledge and experience in large complex litigation including in the areas of financial services disputes, regulatory investigations, consumer and commercial disputes and insolvency.” Prior to joining LLS in 2021, Colantonio had also spent five years at MinterEllison as a senior associate, as well as having served as a senior legal counsel at Commonwealth Bank.

In a comment on the post, Colantonio said that she is “excited to contribute to the board and collaborate with my fellow funders.”

AALF closed by adding that it would be “celebrating these milestones at the Member drinks event on 26 September 2024.”

Commercial Fundraising

CASL to Close Capital Raising for Fund 2

By Harry Moran |

With persistent uncertainty over global economic stability, the uncorrelated aspect of litigation funding as an asset class has never been a more effective tool for attracting outside investors.

In a post on LinkedIn, Stuart Price, CEO and Managing Director of CASL, announced that the Australian litigation funder would be closing the capital raising for its CASL Fund 2 on 26 August 2024. In the post, Price highlighted litigation funding as a “true alternate asset that is not correlated to the stock market, economy, property, US elections, bonds”, and encouraged interested investors to get in contact to discuss this opportunity.

Price also highlighted an article in the Australian Financial Review from July that provided insights into the success of CASL Fund 1, which reportedly provided “returns of 165 per cent from two lawsuits.” 

Price explained that Fund 2 “is following the same proven mandate and focusing on primarily Australian investment opportunities”, allowing the litigation funder to build on its existing domestic strategy to maximise returns for investors. He went on to say that “the opportunity to invest for sophisticated or wholesale investors is rare to access diversification at this scale”, noting that CASL had 28 years of experience in the asset class and was, for the first time, offering “an innovative capital guarantee option”. CASL first announced the launch of Fund 2 in a media release on 1 July 2024.

Announcements Commercial Deals

Nakiki SE Files Letter of Intent for Acquisition of Casino Lawsuit Portfolio

By Harry Moran |

The Nakiki SE announces that it has signed a Letter of Intent to acquire a portfolio of so-called casino and sports betting lawsuits with a disputed value of approximately EUR 6.3 million (plus interest of at least EUR 800,000, as well as additional costs). Nakiki SE or one of its subsidiaries intends to take over an existing portfolio of lawsuits instead of pursuing individual lawsuits as announced in the ad hoc announcement of April 17, 2024. The individual lawsuits mentioned in the ad hoc announcement of April 17, 2024, will not be financed for the time being.

According to German case law from various legally binding decisions, players have a claim for reimbursement of gambling losses, as online casinos largely operated illegally until 2021. The lawsuits to be financed by Nakiki or Legal Finance are based on this legal perspective. A ruling from the German Federal Court of Justice (BGH) and the European Court of Justice (ECJ) is still pending.

In the event of the acquisition of the portfolio and a successful outcome of the litigation, Nakiki or a financing subsidiary is entitled to up to 25% of the litigation success.

Community Spotlights

Member Spotlight: Julian Coleman

By Julian Coleman |

With a background in Physics, Engineering and Software, Julian Coleman has 30+ years’ experience at the COO level conceiving new products and leading the project management, system design, engineering, software development, manufacturing, compliance and delivery teams.

Company Name and Description: 10th Mind is an e-discovery company that has been created with a major focus on innovation, not only for general e-discovery activities but in particular to assist litigation funds to overcome their specific challenges and threats  –  a special approach demanding a change of mindset.

Our name reflects our focus on innovation and is derived from the intelligence community – the Tenth Man principle. It requires that, where a group of ten analysts is working on the same data and nine of the group reach the same conclusion, it is the duty of the 10th person, the 10th Mind, to examine the issue on the premise that the other nine are wrong.

The ‘group think’ consensus may be right most of the time, or even mostly right all of the time, but tends to favour business as usual. The 10th Mind is there to challenge the consensus view and proffer different solutions.

10th Mind has defined (and addressed) four key areas:

  • Costs – there is in our view an increasing understanding that costs must be reduced
  • Process management and recording – not only does a very efficient process drive costs down, but it can (and must) include extensive record keeping of the entire process in order to support effective litigation
  • Technology will play an ever increasing role
  • Litigation Funds – a rapidly expanding market both in terms of finance available and in market sectors, funds are naturally focused on profit, a critical part of their business being case selection – and costs are a major factor here too. Funds have their own challenges, but also are having a significant impact on the wider litigation landscape.

Addressing these issues has been very interesting. As a seasoned C level executive it has been interesting to analyse and then dispense with so much convention. A business structured around what is today rather than yesterday can look very different and cost far less whilst being intrinsically more responsive and adaptable. In terms of what we can do, having no legacy structures to worry about has major benefits which transfer to the client:

  • Costs are reduced.  Many expensive overheads can be dispensed with.
  • We have developed our own project management and recording systems; based on PRINCE2 and facilitated by our unique software, integrated with selected new commercial products, management processes are vastly improved. Full traceable record keeping and transparency are built in and automated, essentially at zero cost.
  • …and finally but crucially, 10th Mind will work with funds on special terms:
    • if the fund is prepared to take on a case we will work on a CFA basis
    • we will also work with the fund on a CFA basis to undertake early stage investigations, in our view crucial to improving the evidence on which to base case selection and ultimately, therefore, profitability.

At 10th Mind we are convinced that not only is such an approach necessary now, but there will be ever-present forces driving the need for continued evolution:

Costs are becoming a major issue.  Significant concern has emerged in the English litigation funding community over last year's Paccar judgement. Omni Bridgeway’s Co-chief Information Officer, Matt Harrison, has said that some litigation funders may not survive the economic instability as “they don’t have the money available to them to invest in cases and in law firms.”  Bloomberg Law also recently noted that some litigation funds are currently facing financial difficulty.

Burford, one of the biggest litigation funds in the world and which describes itself as "the institutional quality finance firm focused on law", undertook surveys from which they report:

"[Over half of respondents to its poll] (52%) say drastic steps are needed to better manage legal costs, such as moving away from the billable hour, limiting outside firms and more innovation from outside counsel."

and

"Finance and legal professionals agree: the legal department’s top priority for the next 15 years is to minimize legal costs. But they are also unified in prioritizing that the legal department simultaneously find new ways to recover value."

It is clear there is a consensus that costs, specifically cost reduction, must be considered, and in our view, litigation funds will be a driving force.

Litigation funds have a very different focus from law firms, crucially they exist to make profits and that means winning cases, which in turn places a focus on the initial assessment stage.  And, as previously observed, the sector is expanding both in terms of available funds and in scope, driving change and posing challenges for dispute litigation as a whole. 

Logically as funding takes over a larger percentage of dispute litigation, the greater the overall impact this will have on costs. Arguably as saturation approaches, such pressures can only increase.

Process management and recording is in our view now essential, not merely tracking the ingestion and processing of data from collection to court, but the recording of all the management processes which defined the data management: who did what, when and why, recorded in forensic detail. This not only, if done well, improves business processes but it evidences them should legal challenges arise. Hence this data must be ‘forensics ready’.

Technology can and will help. But it must be the right technology which assists the first two objectives, ie improving practises whilst reducing costs. Having found critical gaps in commercial offerings, we have worked on our own solution.

Website: www.10thMind.com

Founded: 2023

Headquarters: UK (London)

Member Quote: We feel it crucial that providers must always question the legacy thinking and structures that entrench lack of efficiency, accuracy, and high costs.  By applying the 10th Mind principle, we are providing services in a new way: shared risk, formal (and unique) project management and software, along with specialised services specifically to assist funds combine to make us, to our knowledge, unique in the e-discovery sector.

If you would like to find out more as to how we can assist you and your clients, we would be delighted to meet you. Please contact us through our website (www.10thmind.com) or email our COO directly at julian.coleman@10thmind.com.

Announcements Commercial Legal Innovation

Darrow Expands PlaintiffLink to Support Mass Arbitration

By Harry Moran |

Darrow, the leading legal intelligence platform, today announced the launch of Darrow’s PlaintiffLink platform for mass arbitration.  With tens of thousands of plaintiffs already uniquely vetted on PlaintiffLink, the platform offers unparalleled quality of service for law firms in the pursuit of justice. 

PlaintiffLink is a revolutionary plaintiff-connecting tool for law firms, now built to support the complexity of mass arbitration cases. PlaintiffLink enables attorneys to plan, review, and approve potential clients through a centralized portal. It allows attorneys to connect with the large volumes of clients needed for mass arbitration. Using the platform, attorneys can gain data driven insights that power effective filing strategies and streamlined case management, backed by Darrow’s top-tier legal consultancy. 

“PlaintiffLink provides a cutting-edge solution to the risks and costs associated with mass arbitrations, and makes it easier for attorneys to promptly connect with the tens of thousands of clients needed for these types of cases,” said Evyatar Ben Artzi, Co-Founder and Chief Executive Officer of Darrow. “We’re committed to delivering technology that helps victims connect with the best law firms to ensure justice is served, even in the most complex matters that require expert attention.”

PlaintiffLink addresses the biggest barrier for attorneys considering mass arbitration cases: connecting with a large volume of qualified plaintiffs and managing them seamlessly. Through a centralized portal, attorneys can now leverage PlaintiffLink to connect with tens of thousands of thoroughly vetted, qualified plaintiffs needed for arbitrations. The service operates on a unique contingency model, shifting financial risk away from attorneys.

“We’ve built a dedicated solution to enable visibility into client cohorts in a single matter  so that attorneys can effectively file and manage cases,” said Gila Hayat, Co-Founder and Chief Technology Officer of Darrow.

PlaintiffLink enables lawyers to swiftly review through thousands of individual clients. Users can drill down into specific claim cohorts, download raw CSV data files containing all details about each claim, and review insight reports to get a more visual and statistical analysis of the case. PlaintiffLink also employs a comprehensive review process, with two tiers of expert vetting, to streamline client acquisition and reduce invalid claims. 

Darrow is committed to delivering products that drive firm growth and profits per partner, and it is planning additional releases throughout 2024 to support its users.

For more information, visit: https://darrow.ai 

About Darrow

Founded in 2020, Darrow is a legal tech company on a mission to fuel law firm growth and deliver justice for victims. 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.

Community Spotlights

Member Spotlight:  Michael Klaschka

By Mike Klaschka |

Michael Klaschka is a Managing Principal and head of the Financial Institutions team based in EPIC’s Jersey City office.  He has over 32 years of industry experience and is a highly respected and skilled negotiator in the professional liability marketplace. 

Mike has extensive experience working with financial institution, investment management, litigation finance, real estate, venture capital, private equity and complex risks with strong technical knowledge of D&O, E&O, Cyber, Fidelity, Fiduciary, Media and Employment Practices Liability. 

Mike joined EPIC in August 2016.  Prior to joining EPIC, Mike was the national leader of Integro’s Management Risk Practice where he spent 11 years.  Prior to Integro, Mike spent 10 years at Marsh & McLennan where he held various positions including head of their E&O Center of Excellence Group based in NY as well as the west coast FINPRO placement leader for their financial institution, technology and commercial accounts group based in San Francisco.  Mike earned a Bachelor of Arts Degree from Drew University in 1991, and majored in Economics with a minor in Political Science.

Company Name and Description:  EPIC Insurance Brokers & Consultants

We are a unique and innovative retail risk management and employee benefits insurance brokerage and consulting firm, founded in San Francisco, California in 2007 with offices and leadership across the country.

EPIC Insurance Brokers & Consultants has a depth of industry expertise across key lines of insurance, including risk management, property and casualty, employee benefits, unique specialty program insurance and private client services.

Company Website: https://www.epicbrokers.com/

Year Founded: 2007

Headquarters: San Francisco, CA

Area of Focus: Property & Casualty Insurance with expertise in Directors’ & Officers’, Errors & Omissions, Employment Practices, Fund, and Cyber Liability.

Member Quote: Procuring insurance for litigation finance companies can be a challenge as many insurers view the industry as driving up their costs.  Several even prohibited their underwriters from offering terms.  In addition, litigation finance companies have unique exposures that are not addressed in “off the shelf” products offered by insurers.  At EPIC, we have the knowledge and experience as well as the relationships with key insurers that gives us the ability to negotiate and place coverage tailored to each client.

Commercial

ALFA Welcomes HFW as Newest Associate Member

By Harry Moran |

In a post on LinkedIn, The Association of Litigation Funders of Australia (ALFA) announced that it is welcoming HFW as its newest Associate Member. HFW becomes the 15th Associate Member of ALFA, following the inclusion of YIMBA last month.

HFW is a leading global law firm in the aerospace, commodities, construction, energy, insurance, and shipping sectors with a proud history of 140 years in practice. HFW boasts a truly international network with more than 700 lawyers across the Americas, Europe, the Middle East, and Asia Pacific.

In the post, ALFA said it was looking forward to working with Maurice Thompson, Equity Partner and Global Head of Litigation Funding, along with the rest of the team at HFW.

In a comment on the announcement, Thompson said “I'm very pleased to have joined ALFA with HFW, In the contact I have had with the Association and its members in the past few weeks, I have been impressed with the collegiality across the membership, notwithstanding the competition in this growing sector. To me, it showcases an appreciation that this is a vibrant and fluid sector and that we can all benefit from having open discussions on opportunities and challenges.”

More information about HFW can be found on its website. More details about ALFA and its members can be found here.

Case Developments Commercial

Nera Capital Acquires 50,000 Claims in Spanish Car Cartel Collective Action

By Harry Moran |

As LFJ reported last month, Nera Capital has already made headlines with its foray into funding claims brought against the truck cartel. The funder is building on this momentum with an announcement that it has acquired a large number of claims in the Spanish car cartel proceedings.

Reporting by CDR reveals that litigation funder Nera Capital has purchased 50,000 claims in a Spanish collective action being brought against 20 car makers and dealers, with the Dublin-based funder indicating that it planned to acquire another 200,000 claims in this class action. The claims are part of legal action being brought against these car companies over allegations that they took part in a cartel scheme which resulted in a 10 to 15% increase in prices for consumers.

Nera’s chief underwriting officer, Amy Fowler provided the following statement to CDR: “With 9.7 million cars sold during the cartel period, it is imperative that justice is served and the motorists who worked hard to purchase their vehicles are remunerated.” This move to purchase the cartel claims is reportedly part of Nera Capital’s wider strategy to expand into the Spanish market, with the jurisdiction being seen as an attractive proposition due to lower litigation costs and relatively quick legal proceedings.

The action follows a 2015 investigation by the National Commission of Markets and Competition (CNMC) into the sharing of commercially sensitive information between these businesses, which resulted in €117 million in fines for their breach of the Competition Protection Act. 

The fined companies include: Automóviles Citroën España, Fiat Group Automobiles Spain, B&M Automóviles España, BMW Ibérica, Chevrolet España, Chrysler España, Ford España, General Motors España, Honda Motor Europe, Hyundai Motor España, Kia Motor Iberia, Mazda Automóviles España, Mercedes Benz España, Nissan Iberia, Peugeot España, Renault España Comercial, Snap-on Business Solutions, Toyota España, Urban Science España and Volvo Car España. 

Porsche Ibérica, SEAT SA, and Volkswagen Audi España, did not receive fines following their pleas for clemency for their role in providing evidence to the CNMC investigation.

Case Developments Commercial

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.

Announcements Commercial Deals

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.

Commercial Regulatory Issues

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.

Announcements Commercial People Moves

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 Website: www.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.

Announcements Commercial People Moves

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

Case Developments Commercial

$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.