Litigation Funding in Oil Country
This week Bentham IMF announced the opening of its tenth office, in Houston, Texas. Houston is one of the busiest litigation centres in the U.S., and benefits from Texans’ entrepreneurial approach to business.
The recent advent of litigation funding has also generated a lot of interest in Canadian oil country. In the current economic climate, litigation funding is seen as an attractive option to manage the cost of litigation by those companies that cannot afford to litigate but also as a form of corporate finance for better resourced companies.
Well capitalized companies are increasingly exploring litigation funding as a cash flow and risk management tool to monetize their litigation assets, whilst preserving their own capital for core business activities.
A director of a Canadian resources company in Alberta exploring litigation funding with us recently said:
This proposed litigation will likely cost millions of dollars over the next three years. We can choose to use that money to pay our lawyers, or to drill another gas well. We’re good at drilling gas wells, so we want to use our money for exploration, and your money for the litigation. If they both yield positive results, we’re in great shape. If the litigation doesn’t succeed, it hasn’t cost us anything, and we still have the gas well.
Entrepreneurial businesses see litigation funding as a creative solution that enables them to maximize their assets while mitigating the associated risk. When lawyers propose litigation funding to clients, it demonstrates creative thinking and a business-minded approach to their clients’ legal issues.
To learn more about how to litigation funding can help your clients or how to integrate funding into an RFP, do not hesitate to contact us
The recent advent of litigation funding has also generated a lot of interest in Canadian oil country. In the current economic climate, litigation funding is seen as an attractive option to manage the cost of litigation by those companies that cannot afford to litigate but also as a form of corporate finance for better resourced companies.
Well capitalized companies are increasingly exploring litigation funding as a cash flow and risk management tool to monetize their litigation assets, whilst preserving their own capital for core business activities.
A director of a Canadian resources company in Alberta exploring litigation funding with us recently said:
This proposed litigation will likely cost millions of dollars over the next three years. We can choose to use that money to pay our lawyers, or to drill another gas well. We’re good at drilling gas wells, so we want to use our money for exploration, and your money for the litigation. If they both yield positive results, we’re in great shape. If the litigation doesn’t succeed, it hasn’t cost us anything, and we still have the gas well.
Entrepreneurial businesses see litigation funding as a creative solution that enables them to maximize their assets while mitigating the associated risk. When lawyers propose litigation funding to clients, it demonstrates creative thinking and a business-minded approach to their clients’ legal issues.
To learn more about how to litigation funding can help your clients or how to integrate funding into an RFP, do not hesitate to contact us