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IMF Bentham Investment Manager, Nathan Landis, details the information a Litigation Funder will look at when assessing a potential claim for funding.

On 13 February 2017 IMF announced one of the most significant deals for the company, with the launch of a US$200 million litigation investment funding vehicle (“the Fund”).

On 1 January 2017, the Singapore International Arbitration Centre (SIAC) introduced the first edition of its Investment Arbitration Rules. Amongst the innovations, the Rules recognise that Third Party Funding (TPF) arrangements exist and confirm that Tribunals have the power to obtain information concerning such arrangements. In this post, Susanna Khouri, Oliver Gayner and Nathan Landis of IMF Bentham share their perspectives on the developments.

The benefits of using a litigation funder's money, and not your own, to pursue a meritorious claim.

On 10 January 2017, the Civil Law (Amendment) Bill (38/2016) passed its second reading before the Parliament of Singapore. The Bill abolishes the torts of maintenance and champerty, and for the first time makes it expressly lawful for a third party to fund dispute resolution proceedings in Singapore.

The benefits to businesses, big and small, of taking the risk of litigation off balance sheet to free up capital for use elsewhere.

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.

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 .

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.

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.

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.