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

It’s no secret that Litigation Finance is a profitable and growing industry around the world. With Australia, Asia, Europe and North America all enjoying the fruits of lit fin’s labor, is it time for Africa to get in on the act?

In a typical scenario, contingency cases involve Davids v. Goliaths. That is to say, usually smaller law firms are the ones who take cases on contingency. Established firms are less likely to take cases on a contingency basis, but that may be changing—thanks in part to litigation funding.

Third-party litigation funding is becoming a natural response to the economic turmoil caused by COVID-19. Firms beset by financial anxiety are looking to keep balance sheets balanced, and funding is an excellent route.

The growing influence of litigation finance in the global legal environment has led to increased regulation and certain ethical concerns. That said, funders, clients, and legal professionals are all feeling optimistic about the impact of lit fin in the future.  In addition, new markets are opening up in Asia-Pacific and elsewhere. 

Staggering data has emerged in the class action suit against Southern Response, showing that the liability of the New Zealand federal government could surpass $400MM. This estimate is based on the nearly 3,000 plaintiffs subjected to unlawful behavior by Southern Response—who had assumed responsibility for claims sold by private insurer AMI, which was liquidated in 2012. 

A new report from Wolverhampton University Professor Peter Walton shows a 50% increase in the UK insolvency litigation market over the last four years. Given the financial stress caused by COVID-19, we can only assume that the increase in insolvency litigation will continue apace. 

Burford Capital, a worldwide leader in legal finance, has announced the development of a global association for commercial legal finance. Expectations are that it will be finalized before summer is out.

It’s rare to see rulings that specifically address the finer points of litigation funding and remuneration therein. In February of this year, however, a pair of separate rulings have garnered mass attention. 

The Coronavirus is impacting every industry, not to mention affecting all of us personally. This leads to economic anxiety on a massive scale. It can also mean that the sizable recoveries some firms are counting on may not be viable once this crisis is over—and for some time afterwards.  With everyone scrambling to stay afloat, Ted Farrell of Litigation Funding Advisers LLC has some thoughts.

2019 was a year of change and growth in the legal field. Monetization was of particular interest to in-house legal teams. This practice allows firms to de-risk portfolios and exert greater control over receivables by essentially converting an impending recovery into working capital.  

Many law firms and even in-house counsel are feeling the pinch from court closures and delays due to the COVID-19 outbreak. Depending on how long this disruption lasts, many legal entities may find themselves scrambling to fund in-progress claims or take on new ones. As the risk of insolvency grows, maintaining healthy balance sheets is of the essence. 

It cannot be denied that this is a time of stress, uncertainty, and delays. The legal field feels this more acutely than other industries, and it’s already showing in how cases are conducted. We all have a choice: react to what happens, or try to get ahead of it through diligent planning. One key factor in said planning comes in the form of monetization.

Australia is being extremely proactive when it comes to mitigating the impact of the Coronavirus outbreak. In addition to swift self-quarantine protocols and shutdowns, Australia has enacted the COVID-19 Response Act, which passed both houses of parliament. 

We already know that litigation finance can provide opportunities to pursue bigger and more time consuming cases. We also know that funders help companies and clients who couldn’t otherwise afford strong legal representation. But what about those who aren’t strapped for capital? Why are they turning to litigation finance, when they don’t appear to need to?

When you have a strong case you feel great about, you’re probably not thinking about litigation funding. But perhaps you should be. Aside from the inherent risks associated with all litigation, there are a host of reasons why funding should be considered—even when you’re feeling confident.