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What insolvency practitioners need to know about small claim and ‘seed’ funding

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 .

Queensland introduces Class Action legislation

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.