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Recap of IMN’s Inaugural International Litigation Finance Forum

October 19, 2022

Recap of IMN’s Inaugural International Litigation Finance Forum

IMN’s inaugural International Litigation Finance Forum brought together a crowd of international thought-leaders from across the industry, showcasing perspectives from funders, lawyers, insurers and more across a packed day of content.

Following IMN’s successful New York conference, the London event demonstrated the growing reach and maturity of litigation funding, as topics covered everything from recent industry developments to the nuances of international arbitration and dispute resolution. At the core of the day’s discussion, the central themes of regulation, ESG and insurance were present throughout each session, with unique insights being shared by panelists.

The day began with a panel focused on the current state of litigation funding in Europe, where the topic of regulation took center-stage. Whilst most speakers agreed that the proposed reforms in the recently approved Voss Report were a step in the wrong direction for the industry, Deminor’s Erik Bomans offered a contrarian take on regulation, and highlighted that the very existence of this debate around regulation is a positive sign of the industry being taken seriously.

During the second panel on jurisdictional differences in Europe, this view was echoed by Clémence Lemétais of UGGC Avocats, who stated that it was promising that the EU parliament is raising the visibility of the industry, but that the draft resolution ‘shows a lack of knowledge’ about the industry itself. This was further reinforced in terms of individual country requirements by Koen Rutten of Finch Dispute Resolution, who argued that regulation has to be based on facts, and has to address a problem, which he does not see in the Nethlerlands.

A fireside chat with Rocco Pirozzolo of Harbour Underwriting gave the audience a detailed overview of the impact and evolving nature of ATE insurance on litigation funding. During this interview, Mr Pirozzolo highlighted the difference in approaches between insurers and funders when assessing cases, but further highlighted the need for collaboration between the two to deliver wider access to justice.

Two panels completed a busy morning of discussion, with the first providing insight into the evolving nature of funders’ approach to capitalization, and the second analyzing the best practice for those seeking funding. LCM’s Patrick Moloney honed in on the evolution of the industry having come from a place of being perceived as ‘the dark arts and then loan sharks’ to now being in a position where funders like LCM garner investment from public listing. Later, Ben Moss of Orchard Group, offered a detailed overview of how requests for funding should be best structured and highlighted the ‘holy trinity’ of ‘merits, budget and quantum’.

The afternoon saw a broadening of the range of discussions, kicking off with Tom Goodhead of Pogust Goodhead providing an insightful presentation on group litigation in the UK and the need for future reforms to enable growth. Another two panels brought a wealth of insights, with the topics of co-investing, diversification and the secondary market in the first, being followed by a wide-ranging discussion of the different types and applications of litigation insurance.

After a breakout meeting explored the best practices in talent development and growth for women in litigation finance, a trio of panels capped off the day’s agenda. In a wide-ranging discussion of innovative deal terms and structures, panelists from the likes of Brown Rudnick, Litigation Funding Advisers and Stifel, provided insight into everything from the effect of insurance on pricing to the increasingly technical and data-drive process of due-diligence.

Taking a more global approach for the penultimate panel, Alaco’s Nikos Asimakopoulos, skillfully guided the audience through a global look at enforcements and international arbitration. The panel of legal experts discussed an extensive range of topics, with Tatiana Sainati of Wiley Rein, spotlighting ESG as a primary driver in the increase in transnational disputes and particularly in the EU where ESG initiatives have taken hold.

In the final panel of the day, the topic focused in on the use of litigation funding by corporates and institutional investors. In an illuminating exchange, Woodsford’s Steven Friel played down claims by other funders that CFOs and other corporate executives primarily look to litigation funding for its ability to shift legal costs off the balance book. Instead, Friel and other panelists highlighted the need for funders to bring more than just capital to the table, and that true value could be brought through a funder’s insight, as well as its ability to manage the litigation process and reduce the non-financial resource burden on corporates.

Overall, IMN’s inaugural UK event displayed the incredible depth of the litigation funding industry and gave attendees a wealth of insights that will no doubt generate further discussion and debate among leaders. In a day of packed content, IMN’s roster of speakers and panelists provided both high-level overviews and detailed looks at the nuances of certain industry sub-sectors.

Editor’s Note: An earlier version of this article erroneously attributed the detailed overview of how funding requests should be structured to Rosemary Ioannou of Fortress Investment Group. The remark was made by Ben Moss of Orchard Group.  We regret the error. 

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Privilege Expert Argues TPLF Agreements Are Not Automatically Shielded From Disclosure

A new comment letter to the Advisory Committee on Civil Rules contends that third-party litigation funding (TPLF) agreements do not automatically qualify for protection under the attorney-client privilege or the work-product doctrine — directly challenging one of the funding industry's central objections to a federal rule mandating disclosure.

According to AskAboutTPLF, an initiative of Lawyers for Civil Justice, the letter was authored by Bradley partner and privilege specialist Todd Presnell, who takes no position on whether a disclosure rule should be adopted. Presnell argues that TPLF agreements fail all four requirements needed to trigger attorney-client privilege: they are not communications, they are not between a client and lawyer, they lack confidentiality because funders are not parties to the litigation, and they do not contain legal advice or strategy. On that basis, he writes that he does "not perceive the attorney-client privilege or work-product doctrine as a barrier to adopting a mandatory-disclosure rule."

Two recent rulings are cited as support. In *Entangled Media, LLC v. Dropbox Inc.* (N.D. Cal., April 13, 2026), a court permitted a funded plaintiff to seal specific financial terms after in camera review while ordering production of the remainder of the agreement. In *A Co. Hungary KFT v. Bespalov* (Cal. App. 2d Dist., April 22, 2026), an appellate court affirmed $8,000 in sanctions against a judgment debtor who asserted work-product privilege as a blanket objection, holding that privilege claims over funding records must be made document by document.

The campaign argues these cases show courts already redact, seal, and log privileged materials routinely, and that TPLF agreements require no different treatment.

Commercial

Coalition Urges Congress to Curb Foreign Third-Party Funding Targeting the Energy Industry

A coalition of 21 organizations led by the American Energy Alliance (AEA) has called on congressional leaders to close a tax provision that allows third-party litigation financiers to treat their profits as capital gains rather than ordinary income. The group argues the loophole enables foreign investors to extract effectively tax-free returns from U.S. court outcomes, with the American energy sector squarely in the crosshairs.

According to the American Energy Alliance, the letter was sent on June 22 to House Speaker Mike Johnson, Senate Majority Leader John Thune, and the tax-writing committees in both chambers. The coalition contends that foreign sovereign wealth funds and geopolitical rivals have deployed substantial capital into U.S. energy-related litigation, creating national security vulnerabilities through undisclosed financing arrangements.

"Foreign nationals and foreign corporations with no U.S. presence pay no U.S. withholding tax on these gains," said AEA President Tom Pyle. The letter frames third-party litigation funding as a high-yield alternative asset class and warns that foreign entities are weaponizing it in disputes over climate claims, intellectual property, mergers, and environmental regulation.

The campaign reflects the growing convergence of litigation finance, tax policy, and national security in Washington. While the letter does not cite a specific bill, its focus on capital gains treatment signals that funders' tax positions — long a secondary concern in the disclosure debate — are emerging as a distinct front in the broader fight over third-party funding.

Commercial

Irwell Backs Addept With Expanded Legal Expenses Insurance Capacity

Irwell Insurance Company has agreed a five-year capacity partnership with managing general agent Addept Insurance Services, significantly expanding the legal expenses insurance (LEI) capacity available to the UK specialist. The deal builds on an arrangement first struck in April 2025 and is designed to give Addept longer-term planning stability as demand for LEI cover accelerates.

As reported by Insurance Business, the expanded capacity will allow Addept to underwrite a greater volume of business, though financial terms were not disclosed. "Securing strong, quality capacity is a key strategic priority to maintain our pace of growth," said Addept managing director Richard Finan. Irwell chief executive Giles Reading said the partnership is focused on "delivering products that offer fair value to policyholders."

The agreement comes against a backdrop of mounting pressure on the UK's employment tribunal system. Caseloads reached 68,192 at the end of January 2026 — a nearly 50% year-on-year increase — while total outstanding claims now exceed 500,000 and disposals have fallen by roughly 20% over the same period.

Sweeping legislative changes are expected to drive claim volumes higher still. The Employment Rights Act 2025 will extend the claim time limit from three to six months in October 2026, and from January 2027 the qualifying period for unfair dismissal claims will drop from two years to six months, with the compensation cap removed. For LEI providers, the reforms point to sustained demand — and a growing need for the kind of durable underwriting capacity the Irwell-Addept deal is intended to supply.