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UK Legal Industry Drops to Four Year Low

UK Legal Industry Drops to Four Year Low

The UK’s Legal industry generated revenues of £2.35bn in May 2020, 12% down on May last year. May 2020 was the lowest-earning month in four years, according to Office of National Statistics data released on 14th July.

May is traditionally the weakest month of the year for the Legal profession, with April being one of the most lucrative. Industry revenues fell 29% between April 2020 and May 2020, with April having remained relatively robust as the impact of lockdown had likely not yet fully washed through.

In comparison, the overall Services sector (including Legal) which had been harder hit and was at its lowest level in a decade, grew by 2% in May, similarly to the UK’s overall economy which increased by 1.8% month on month.

Louis Young, MD at Augusta said: “May’s revenue data demonstrates the significant negative impact the pandemic has had on the UK’s Legal industry. But as such data reflects work that would have commenced before the crisis, which is in line with how law firms operate, the true final impact is likely to be greater. As the wider economy begins to show signs of recovery, many law firms continue to look for options to control costs and strengthen their balance sheets with the expectation that they are not yet out of the woods”.

About the ONS Data

  • ONS Monthly Business Survey data shows Legal Activities revenue as £2.35bn in May 2020 compared to £3.32bn in April 2020 and £2.67bn in May 2019.
  • The legal industry had been on course for a strong year before the crisis with March 2020 being the third highest month in history for the UK legal industry and April 2020 showing only a 5% decline on March 2020.

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Invenio Adds Litigation Finance Veteran John J. Hanley as Partner

By John Freund |

Invenio has announced the addition of John J. Hanley as a partner, bolstering the firm’s bench in litigation finance, claim monetization, and structured finance. Hanley joins Invenio with a practice that sits squarely at the intersection of complex commercial litigation and sophisticated financial structuring, advising a wide spectrum of market participants including litigation funders, claimholders, law firms, hedge funds, investment funds, and specialty finance providers.

According to Invenio's website, Hanley brings a particular focus on structuring, negotiating, and executing advanced funding arrangements across the full litigation finance lifecycle. His experience spans single-case funding, portfolio transactions, and bespoke claim monetization structures, with a notable specialization in prepaid forward purchase agreements. In addition, Hanley has advised extensively on secured lending transactions involving banks, commercial lenders, and alternative capital providers—experience that aligns closely with the hybrid legal-financial nature of modern litigation funding deals.

A post on LinkedIn announcing the move highlights that Hanley’s practice is designed to support both the capital side and the legal side of funded disputes, an increasingly important capability as funding arrangements grow more complex and interconnected with broader capital markets. His background enables him to navigate not only the legal risks inherent in funding structures, but also the financial and regulatory considerations that sophisticated investors expect to see addressed at the outset of a transaction.

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By John Freund |

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The legislation also introduces mandatory disclosure requirements, obliging parties to reveal the existence of funding arrangements and the identity of funders in both domestic and international arbitrations seated in Malaysia. These changes bring Malaysia closer to established regional arbitration hubs that already recognise and regulate third-party funding.

Alongside the legislative amendments, the Code of Practice for Third Party Funding sets out ethical standards and best practices for funders operating in Malaysia. The Code addresses issues such as marketing conduct, the need for funded parties to receive independent legal advice, capital adequacy expectations, the management of conflicts of interest, and rules around termination of funding arrangements. While the Code is not directly enforceable, arbitral tribunals and courts may take a funder’s compliance into account when relevant issues arise during proceedings.

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