News and analysis dedicated to the commercial litigation funding sector including regulatory issues, case developments, funding activities, and more.

Omni Bridgeway’s most recent podcast features commentary by Junior Surivar of McCarthy Tetrault, and Jon Drummer of Paul Hastings. The episode is part two in a series detailing litigation relating to mining disputes. Geoff Moysa hosts.

As investors remain wary of the stock market, they’re left wondering how to invest effectively. Litigation Funding may prove an attractive alternative for investors depending on their risk tolerance. Litigation funding is uncorrelated to stock trading, and largely insulated from economic conditions.

The core benefit of Litigation Finance is clear—to provide increased access to justice to those who could not otherwise afford it. It’s a noble, necessary, and attainable goal. So why the rush to over-legislate the industry?

As litigation funding grows in popularity in New Zealand, so do calls for legislation. Currently, there are no existing laws in New Zealand that specifically apply to the practice, nor is there a statutory class actions regime.

Liquidators are sometimes ordered to pay costs, which is not a situation any want to be in. Liquidators have a duty to examine what led up to the liquidation, and to bring and defend a legal case if applicable. But if they lose, costs can be awarded against them personally.

A settlement in a case over PFAS contamination has claimants enraged. In 2015, residents were told by a local newspaper article that their water supply had been tainted by PFAS. The chemical had been used in foam used to combat fires. Not unexpectedly, property values plummeted and local businesses suffered.

Third-party legal funding has been in use in the United States, the UK, and Australia for over a decade. Now we see it moving into the Middle East and Asia. This may be illustrated most clearly in the construction field, where cross-jurisdictional cases are now making use of the practice.

Manchester tech company Nanoco Group has expressed confidence in its legal action against Samsung. The tech business is pursuing a case for IP infringement against the electronics leader. Nanoco has also revealed signing a litigation funding agreement with an as-yet-unnamed American litigation funder.

Burford Capital, an AIM-traded litigation funder, priced its PPO of $400 million on Monday. The fundraise is planned for use in the general fund, and is to include repayment of existing debt.

Earlier this week, LFJ released its latest podcast episode, featuring Elena Rey of Brown Rudnick. Elena discussed her effort to introduce model documentation to the litigation funding industry, including the founding of the Litigation Funding Working Group, which brings together litigation funders, insurers, legal experts and others to help formulate model documentation for use in the UK, EU and elsewhere.

A class action against credit giant, Mastercard, could net UK claimants a cool GBP 300 apiece. The two-day Competition Appeal Tribunal hearing is scheduled for March 25th. As the case awaits certification, Mastercard maintains that it does not agree with the claim and that it intends to fight back.

Security for costs is still a contentious issue in the Litigation Finance community. An English Court of Appeal ruling was clear in its message that third-party litigation funders should be ready to provide evidence of their ability to cover an adverse costs order.

A report released by Burford Capital this week reveals that the funder has had its best year ever for recoveries. At the same time, profits shrank from the previous year. Burford suggests that the pandemic didn’t have the detrimental impact on business that was originally suspected.

Compared to the rest of the continent, South African laws regarding third party litigation funding are advanced. Compared to the rest of the developed world, however, the country is lagging behind. Legislation is minimal, and court decisions are decided on the basis of precedent rather than law. Could that be changing?

Bow Street has a unique take on Litigation Finance. Instead of funding cases from the outset, Bow Street finds and buys litigation assets in cases where guilt has already been adjudicated. That means the main focus is on the damages.

Therium, a global leader in Litigation Finance, is funding a legal action against insurers who failed to honor business interruption policies. The funding arrangement means that businesses may join the claim at no upfront cost.

Claims of direct losses and loss of opportunity are some of the accusations being levied regarding the collapse of the Woodford Equity Income Fund. The claim, led by RGL Management group, is against Link Fund Solutions as well as Hargreaves Lansdown Asset Management.

At last, at least 15,000 seaweed farmers in Indonesia will be compensated by the oil company responsible for one of Australia’s largest oil spills. West Timor farmers were devastated by the spill, which covered more than 240 kilometers of seaweed crops nearly 12 years ago. Harbour provided third-party funding for the action.

A CrowdJustice appeal has been launched to cover legal fees, as homeowner John Gaskell seeks justice for a home beset by problems. While Gaskill points to issues involving heating and insulation, plumbing, and disability access compliance, the developer describes these issues as ‘cosmetic.’

Elad Smadja, CEO of litigation funder Taurus Capital, explains the basics of litigation funding. Taurus is actively pursuing investments in South Africa. 

Level, the family law litigation funder founded in 2017, has just sold an equity stake to 1818 Venture Capital. The GBP 20 million deal is also expected to refinance Level’s revolving credit line.

As lockdown restrictions ease up around the globe, applications for legal funding are increasing. Litigation Capital Management claims that corporate clients are applying for funding at a 68% higher rate than the same period last year.

Fully digital law firms are on the way, thanks to a new B2B SaaS platform developed by Legl, a London firm. Founded by Julia Salasky in 2019, Legl focuses on law operations.

Competition between law firms in London just got a little more fierce. Byrne and Partners and PCB Litigation have merged—with Burford Capital’s blessing. The deal will go live next month when PCB Litigation moves into the Byrne and Partners offices. This will result in a firm led by 15 partners.

Australia’s predilection for over-regulating litigation funders is on display again. A proposed 30% limit on gross returns to funders could devastate funding for class actions. New research from PwC’s Jeremy Thorpe suggests that even a 36% return rate for funders would fail to cover even basic legal costs.

The financial world has been on the receiving end of investor-related whimsy of late. Bizarre and unexpected high-end investments are taking financial pros by surprise. But what is driving these unusual, sometimes even hilarious, investments?

The current legal climate in Kenya isn’t much different than that of the developed world. Access to justice is often limited to what the litigant can afford or raise. Those who cannot afford to fund their cases may sell off assets or crowdsource funds. But as of now, the option to seek third-party litigation funding on a non-recourse basis is not available to Kenyans.

Regulations regarding damages-based agreements can create havoc in a collective action. Recently, all eyes were on a Court of Appeal ruling regarding truckers and the Road Haulage Association, as well as the third-party funders financing the collective action.

Aviva Will is the founder of The Equity Project, as well as the Co-CEO of Burford Capital. In honor of International Women’s Day, she led a panel on how men can better challenge gender inequities in the legal field.