Bentham IMF’s New York Investment Managers and Legal Counsel, Dave Kerstein and Jim Batson explain how Bentham structures its financing deals to enable risk sharing while delivering simplicity, fairness, and transparency.
Law360 published an expert analysis column written by Bentham IMF’s Chief Investment Officer, Ralph J. Sutton, which sets forth several predictions about major commercial litigation funding trends to watch in the new year.
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.
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 .
In 2006 the High Court of Australia, by a majority in the renowned Fostif decision, approved of a litigation funder agreeing by contract to meet the costs of a legal proceeding in return for a share of any sums recovered.
This chapter examines the growth, developments and regulation of the litigation funding industry.
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.
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.
