Blog

Every century or so, the legal industry evolves to help parties deal with the ever-increasing costs of litigation.

Law.com published an article written by Bentham IMF Legal Counsel, John Harabedian, regarding the assortment of notable legal decisions relating to litigation funding that were handed down in 2016.

A jaw-dropping 59% of firms reported that “non-hourly” fee projects were as profitable or more profitable than standard hourly billing.

While each funder uses a unique set of criteria to assess the potential value of investing in a case, lawyers are likely to find similarities in the factors taken into consideration.

Involving an experienced litigation funder at an early stage can give clients a significant strategic advantage, certainty about how their litigation will be resourced, and eliminate adverse costs risk.

Litigation funding may provide an effective alternative to selling receivables for law firms looking to quickly improve cash flow, enhance profitability, and preserve future revenue.

Law firm portfolio funding is a form of litigation finance involving a third-party investment in several cases on which the same law firm has been engaged on a contingency basis.

Claim value is unquestionably a key factor in the funding decision. A $1 million claim can be as complex and expensive to run as a $5 million claim. As claim value moves below $1 million it is likely to be less commercially viable to fund. An inflection point is reached where the costs and risks approach or exceed potential recoveries. In the insolvency context, Court approval, if required, may depend upon the Insolvency Practitioners demonstrating that pursuing the claim is in the creditors’ interests. To that end Courts have regard to claim value and likely return to creditors .

Litigation finance is an important tool that can help debtors and trustees improve recoveries for their stakeholders. Here's how.

IMF Bentham re-introduced funding for small claims due to the continuous amount of enquiries it was receiving from claimants with meritorious small claims but a lack of funds to pursue them. Find out more about how small claims funding can help to minimise litigation risk for both claimants and practitioners.

In September, Bentham hosted leading experts, litigators and academics for a roundtable discussion about the role that litigation funding might play in Canada.

Bentham must consider a host of important financial and economic factors when considering whether to fund a case.

Earlier this month, the Queensland Parliament enacted legislation to allow class actions to be commenced in the Supreme Court of Queensland. The new regime largely adopts class action procedures already in place in other jurisdictions. IMF Associate Investment Manager, Alexandra McVay, details more about the new regime.

In the latest issue of Canadian Business Magazine, Sarah Niedoba explores the growth of litigation funding in Canada.

Bentham welcomes a new addition to its U.S. investment committee - former chief judge of the Northern District of California, Vaughn R. Walker.

Litigation funding is rising in Asia, giving law firms and their clients new opportunities to pursue strong claims in a wide variety of cases.

On 26 October 2016 the Full Federal Court made its first potential "common fund order" in the class action Money Max Pty Ltd (Trustee) v QBE Insurance Group Limited. Provided the funder, applicant and solicitors for the applicant undertake to comply with the court sanctioned funding terms, the Court will make orders, including that the applicant and all group members pay the funder a Court approved funding fee from any recoveries.

Firms that are experiencing a slowdown may find value in litigation funding as a means of taking on high-risk cases.

Earlier this month, Hong Kong’s Law Reform Commission recommended that the common law principles of maintenance and champerty, which have held force in Hong Kong far longer than other jurisdictions, should no longer apply to arbitration and associated proceedings. This development comes hot on the heels of the promulgation of Singapore’s Civil Law (Amendment) Bill, anticipated to become law by the end of the year, abolishing maintenance and champerty in arbitration and certain other proceedings.

The latest issue of Norton Rose Fulbright’s International Arbitration Report focuses on recent changes to the rules surrounding third-party funding in international arbitration.