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Key Takeaways from LFJ’s Town Hall on How Litigation Funders Should Respond to the UK Supreme Court Ruling

August 11, 2023

Key Takeaways from LFJ’s Town Hall on How Litigation Funders Should Respond to the UK Supreme Court Ruling

Wednesday, August 9th, LFJ hosted a panel of UK-based litigation funding experts who discussed the recent UK Supreme Court decision, and the potential impacts on the funding industry. The expert panel included: Nick Rowles-Davies (NRD), Founder of Lexolent, Neil Johnstone (NJ), Barrister at King’s Bench Chambers, and Tets Ishikawa (TI), Managing Director at LionFish. The panel was moderated by Peter Petyt (PP), Founder and CEO of 4 Rivers Services. PP: How does this ruling impact the enforceability of LFAs in current, ongoing cases?  And what about LFAs from previously funded and concluded cases?   NRD:  It has a pretty big impact.  First of all, the existing arrangements between clients and litigation funders are going to come under scrutiny, because the lawyers acting for clients are going to have to review their positions. This is not a decision which is making new law, this is a statement of existing law as it has always been, so that review will have to be dealt in the light of the decision. The bigger impact is going to be on concluded cases. That may cause some difficulties. I’m already hearing that there are ongoing discussions on matters that have already concluded, where an agreement that provided for a percentage to be paid to the funder is now being discussed as to whether it should have been paid. That is going to be a distraction, it is going to be an ongoing issue, and I suspect that there will be opportunistic attempts on the part of defendants, in terms of challenging existing litigation funding agreements. So how that concludes, one can only guess, but the reality is, it’s a distraction and disruption, and will be an ongoing issue. PP: Tets, you’re running a fund. You’ve concluded agreements, you’ve got ongoing agreements. How are you proposing to deal with all of this?  TI: Ultimately we are in the business of funding litigation cases, so the world goes on. We can’t stop doing it just on the basis of what may be a speculative risk. What we’re trying to understand here, is the key risks we have. In terms of our book, we don’t have any percentage share of the awards, in relation to proceedings in the CAT. So we’re safe in that regard. But in terms of enforceability, there are some agreements that we’ve had to refute. But obviously, that’s a commercial conversation, and the reality is, people are generally appreciative that they’ve got funding, not ungrateful, so there’s a lot of cooperation. I agree with Nick that generally speaking, the ongoing cases and cases going forward are more manageable. The big distraction will be the concluded cases. My position is slightly more nuanced than Nick’s, in that I think it is a distraction, but I think it’s going to be far less of a risk, partly because the reality is that a lot of funding agreements are entered into in the first place with the purpose of helping claimants that are impecunious. If the claimants have got damages out of it, they are certainly very grateful. Granted, there are some who may not have gotten as much as they wanted because of funding arrangements. But there is the fact that they’ve gone through a very long litigation process. If it was all about money, then some might very well pursue that course of action. But the reality is, most will think twice about going after a funder, and if they do, the chances are that they’ll probably need funding anyway. So if they have to go back to funders, only funders with no interest or claims or willingness to back the industry in the UK would fund those claims. So I think it’s more of a distraction than a real risk. PP: Do you see any consolidation or direct impacts on the consolidation piece, from this judgement?  NJ: I suspect there will be anyway. This comes at a time that is difficult for all funders given the larger macro-environment. This comes at unfortunate timing. However, the hardest knives are forged in the hottest fires. I do think you will see not just consolidation within the industry, but funders looking at where they can best add value, such as portfolio funding or other strategies, so they have a proper niche within the market. Overall, it’s not terminal for the industry by any stretch. It is a bump in the road that is inherent in any growing industry. But I do think that regulatory clarity would help the industry a lot. There is a lot of useful ammunition for ILFA in Lady Rose’s dissenting judgement and in previous judicial comments making well-worded judicial criticism of the legislative patchwork we have in the UK. And I think there could be a very good argument to put forth to a government that I hope could be sympathetic to wishing this industry continues. London is a legal and financial capital of the world, and this industry sits at that nexus. So long term, there is nothing to particularly worry about. To listen to the full panel discussion, please click here.

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Institute for Legal Reform Urges EU Clampdown on Litigation Funding

By John Freund |

As debate over third-party litigation funding (TPLF) continues to intensify globally, new pressure is being applied at the European level from business and industry groups calling for tighter oversight. A recent submission from a U.S.-based advocacy organization urges EU policymakers to take coordinated action, framing litigation funding as a growing risk to legal certainty and economic competitiveness across the bloc.

An article from Institute for Legal Reform outlines a formal letter sent to senior EU officials calling for harmonized, EU-wide regulation of third-party litigation funding. The Institute argues that the rapid expansion of TPLF—particularly in collective actions and mass claims—has outpaced existing regulatory frameworks, creating what it characterizes as opportunities for abuse. According to the submission, funders’ economic incentives may distort litigation strategy, encourage speculative claims, and exert undue influence over claimants and counsel.

The letter specifically urges institutions such as the European Commission and the European Parliament to introduce transparency and disclosure requirements around funding arrangements. The Institute also advocates for safeguards addressing funder control, conflicts of interest, and capital adequacy, suggesting that inconsistent national approaches risk regulatory arbitrage. In its view, the EU’s Representative Actions Directive and broader access-to-justice initiatives should not be allowed to become conduits for what it calls “profit-driven litigation.”

The submission reflects a familiar narrative advanced by business groups in the U.S. and Europe, linking litigation funding to rising litigation costs, forum shopping, and pressure on corporate defendants. While the Institute positions its recommendations as pro-consumer and pro-rule-of-law, the letter has already drawn criticism from funding advocates who argue that TPLF improves access to justice and levels the playing field against well-resourced defendants.

Case Developments Commercial

Siltstone Capital Reaches Settlement with Former General Counsel

By John Freund |

Litigation funder Siltstone Capital and its former general counsel, Manmeet “Mani” Walia, have reached a settlement resolving a trade secrets lawsuit that had been pending in Texas state court. The agreement brings an end to a dispute that arose after Walia’s departure from the firm, following allegations that he misused confidential information to establish a competing business in the litigation finance space.

As reported in Law 360, Siltstone filed suit in late 2025, claiming that Walia, who had served as general counsel and was closely involved in the company’s internal operations, improperly accessed and retained proprietary materials after leaving the firm. According to the funder, the information at issue included sensitive business strategies and other confidential data central to Siltstone’s competitive position. The lawsuit asserted claims under Texas trade secrets law, along with allegations of breach of contract and breach of fiduciary duty tied to confidentiality and restrictive covenant provisions.

Walia disputed the allegations as the case moved forward, setting the stage for what appeared to be a hard-fought legal battle between the former employer and its onetime senior executive. However, before the dispute could be fully litigated, the parties opted to reach a negotiated resolution. Following the settlement, Siltstone moved to dismiss the case with prejudice, signaling that the matter has been conclusively resolved and cannot be refiled.

The specific terms of the settlement have not been made public, which is typical in cases involving alleged trade secret misappropriation. While details remain confidential, such resolutions often include mutual releases of claims and provisions aimed at protecting sensitive information going forward.

Commercial People Moves

Burford Capital Makes Strategic Entry into South Korea

By John Freund |

Litigation funder Burford Capital is expanding its footprint in Asia with its first senior hire in South Korea, marking a strategic move into a jurisdiction it sees as increasingly important for complex commercial and arbitration disputes. The firm has appointed Elizabeth J. Shin as Senior Vice President and Head of Korea, with responsibility for leading Burford’s activities in the market and developing relationships with Korean corporates and law firms.

Law.com reports that Shin joins Burford from Lee & Ko, where she was a partner in the firm’s international arbitration and global disputes practice. Her background includes advising on high-value cross-border commercial disputes, intellectual property matters, and arbitration proceedings across a range of industries. Burford has positioned her experience as a key asset as it looks to support Korean companies pursuing claims in international forums and managing the cost and risk of major disputes.

The hire reflects Burford’s view that Korea represents a growing opportunity for legal finance, driven by the country’s sophisticated corporate sector and increasing involvement in international arbitration and complex litigation. By establishing a senior presence on the ground in Seoul, Burford aims to provide local market insight alongside its capital and strategic expertise, while also raising awareness of litigation funding as a tool for dispute management.

Korea has traditionally been a more conservative market for third-party funding compared with jurisdictions such as the US, UK, and Australia, but interest in alternative dispute finance has been gradually increasing. Burford’s move signals confidence that demand will continue to grow, particularly as Korean businesses become more active in global disputes and seek flexible ways to finance large claims.