The most successful Litigation Finance firms are those that act as partners, not merely funders. Funders can join a team at any point in the case and still make a positive impact. John Garda has recently made the move from full-time litigator to assessing funding opportunities for Longford Capital.
Trucking companies, insurers, and employees have been having a rough couple of years. Tax law changes have cheated drivers out of their per diem, making their taxes skyrocket. Insurance rates climb ever higher as large payouts cripple insurers. Some have placed the blame on Litigation Finance, claiming that enabling plaintiffs has had a negative impact on insurers. But is that fair?
An Australian case involving contamination from firefighting foam has settled with what the judge called a “fair and reasonable” amount. The class action over PFAS contamination in three Australian towns has been underway for years, involved multiple law firms and over 500 claimants.
Scotland, like much of the world, is bracing for a spike in litigation related to the Coronavirus. Business closures, insurance disputes, non-payment of rent, and other common types of litigation are expected to rise at least three-fold. Once courts are up and running again, the backlog of cases and filings is expected to take 1-3 years to completely clear.
Litigation is more popular than it’s ever been. With a predicted spike in litigation just around the corner, plenty of investors are wondering whether or not they should get involved. This rapidly growing industry has gone from just six dedicated lit fin firms in 2008, to over 40 commercial litigation funding entities as of last year. Together, they manage assets of nearly $10 billion.
Last year, former law firm managing partner John Garda was recruited by Longford Capital to head up their new Dallas office. This includes underwriting in addition to investment sourcing and monitoring. With more than 25 years of litigation experience, his expertise includes complex commercial and securities litigation, investment banking disputes, real estate, and construction disputes, healthcare contracts, and more.
Bankruptcy cases are expected to increase in the coming months, as companies struggle to recover from pandemic-related losses. It’s been reported that firms across the world are looking desperately to hire more bankruptcy lawyers to help handle the expected flood in new cases.
Despite improved awareness, the issue of gender inequity in law has not been satisfactorily addressed. It’s difficult to say precisely where the problem lies. What we do know is that General Counsel can be doing more to close the gender gap.
Champerty is a word we hear often in connection with Litigation Finance. Despite the term being coined in the middle ages, champerty remains a reasonable issue to take precautionary measures against. The original purpose of champerty laws was to keep litigation from becoming a commercialized business.
Litigation Finance is poised to experience a boom in demand as the world tries to recover from COVID-19. Rampant financial uncertainty creates a need for the funding that insures access to justice for those of few means. Funders are well-capitalized, and preparing to sift through cases to find those with the best chances of success. This is all very similar to what the legal world experienced during the 2008 financial crisis.
Government-owned entity Southern Response is engaged in a last-ditch effort to avoid an opt-out class action over allegations regarding earthquake insurance settlement claims. Policyholders have asserted that Southern Response withheld information allowing them to underpay when settling claims related to the Canterbury earthquake.
The largest divorce settlement in Britain’s history is not over yet. Temur Akhmedov recently lost his effort to keep his money secret from his step-mother—who is still attempting to gain the award settlement from her divorce. Tatiana Akhmedova is utilizing litigation funding from Burford Capital as she pursues her claim.
Lauren Bernstein joined Curiam Capital LLC in March 2019. Her experience spans more than a decade. In this interview, she discusses starting her own business in 2014, why she chose to work in Litigation Finance, and how COVID impacts several parts of her life.
On June 11th, Litigation Finance Journal held a special digital conference on Covid’s impact on the Consumer Legal Funding industry. The panel discussion was moderated by Dan Avnir, Managing Director at Bryant Park Capital. Panelists included Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding (ARC), Kevin Confoy, Chief Risk Officer of GloFin, Paul Galsterer, Founding Partner of The Injury Firm, Lawrence Yablon, Partner at Robinson Yablon PC, and Anthony Sebok, Professor of Law and Co-Director of the Jacob Burns Center for Ethics in the Practice of Law at Benjamin N. Cardozo School of Law.
How big is the addressable market for Litigation Finance? An exact number would be difficult to come up with. What we do know is that the $85 billion number asserted by Omni Bridgeway and others is the subject of much debate. It represents an estimate of the fees that were paid to plaintiff’s lawyers, but is not really indicative of the state of the entire market.
The current trends of litigation related to intellectual property in Pharma indicate an increase in both cost and risk. Does that mean Pharma cases are a bad investment? One might think so, given how complex patents can be, or the increased risk inherent to Pharma regulations. Even successful cases might later be overturned.
A recent Australian class action award has some legal professionals rankled. Should the federal government take a more active role in regulating agreements between plaintiffs, attorneys, and third-party funders? Attorney General Christian Porter thinks so.
Clause 8 recently hosted a podcast discussion on patent law with investment manager Sarah Tsou of Bentham IMF (now a subsidiary of Omni Bridgeway). Patent law is its own legal specialty owing to the detail-oriented approach and gray areas that it encompasses. Unlike other fields, patent law is not always cut and dry. Likewise, legal cases involving patent law require specialized technical knowledge.
Eight hundred people lost their jobs when refinery Queensland Nickel became insolvent in 2016. Townsville, the locale of the refinery, found itself in financial peril after the collapse. Mayor Jenny Hill explains that the closure caused expansive economic and social issues that have still not been fully mitigated. The city claims to be owed $2.5 million by parent company QNI Metals.
Social inflation is a bit of a buzzword, used to describe a rising cost in insurance claims. Some say this is sour grapes from insurers who don’t want to pay out on pandemic-related policies. Others insist that social inflation is a real problem that, if left unchecked, can cause damage to the very concept of insurance.
It’s normal for a plaintiff to think that after a long court process and a favorable judgment, the worst is behind them. However, not every losing defendant is going to comply as they should. So when it comes to securing judgments and awards, asset tracing is a crucial component.
Like much of the world, Canada is seeing an influx of insurance disputes connected to COVID-19. As more and more insurers insist that their business closure contracts don’t provide protections during a pandemic—businesses and private citizen alike are seeking access to justice.
A growing economy can also lead to growth in litigation disputes. That means an increasing need for great lawyers, and a means to enforce awards. After all, a good judgment doesn’t do much if it cannot be enforced. This can be a particular issue in Asian markets, where legal disputes have risen sharply in recent years.
The idea that clients may be able to pursue a claim without a large initial investment may seem too good to be true. The reality is that litigation funding exists for just that reason—so ordinary people have the means to seek justice when they are wronged.
The legal field experienced record-setting business in 2019. Alas, this year much has changed. Despite many firms seeing a large influx of cases and inquiries, financial tensions loom. COVID-19 has led to worry, late payments, furloughs, court delays, and even outright insolvency for some.
Unrest in the world of investment is nothing new. But current pandemic conditions have led to a wave of class-action lawsuits, many of which come from investors who feel that they were misled on relevant issues. In response, the Australian federal government has announced a rolling back of disclosure rules to protect large companies from class-action suits.
COVID-19 does more than sicken people. It’s brought with it a recession that may take years to mitigate. Businesses across the board are enduring hiring and wage freezes, furloughs, layoffs, and even outright closures. Even the legal community is not safe from the financial ravages of the pandemic.
