Will Litigation Finance Hold Global Corps Accountable? | via Forbes

July 15, 2014

Forbes

Will Litigation Finance Hold Corporations Accountable Globally?

Ralph Sutton of Bentham IMF, an Australian-based litigation funding firm, recently sat down with Forbes magazine’s Daniel Fisher, to discuss the issues of liability and accountability in the world of global finance. Read what they have to say about global litigation and the ways that litigation funding can serve as it’s own checks and balance system in the growing world of finance.

On the surface, globalized accountability and liability might sound like a thorn in the side of businesses and individuals around the world.  But it also represents opportunities for setting global standards for appropriate business behavior and for facilitating the spread of consistent and predictable judgment — and is worthy of support.

The business of litigation finance is playing an increasing role in addressing crushing litigation costs and providing access to justice on a global scale in instances where a company’s bad behavior affects individuals or competitors around the world. Years of experience in the UK, Australia, New Zealand and Canada have confirmed the utility and advantages of litigation finance for parties who otherwise lack the financial resources to bring meritorious lawsuits.

You can read the full article here.

Will Litigation Finance Hold Global Corps Accountable? | via Forbes

Burford Capitol Generates $41 Mil in Cash in Six Months | via City A.M.

July 9, 2014

City A.M.

Litigation funding firm Burford Capitol reported that it nearly doubled it’s investment portfolio in the first half of 2014, generating $41.9 million in cash by the close of June.

BURFORD Capital, which provides finance solutions for litigation, said yesterday that it had generated $41.9m (£24.4m) in cash from its investment portfolio in the first six months of the year.

This figure represents a 94 per cent increase compared to the same time last year.

The company said its 26 investments in the period generated $173.9m (£101m) in gross investment recoveries and $67m net of invested capital. This produced a 63 per cent net return on invested capital and represented a $27m increase over the net position at the end of June last year.

The company also said it committed $62m of new capital during the first half of 2014.

Boss Christopher Bogart said: “Burford’s performance continues to vindicate our approach to investment selection and the quality of our team.

“Moreover, the volume of new commitments made during the last six months shows clearly the market demand for litigation finance solutions.”

The group’s Aim-listed stock closed up 0.8 per cent at 120.5p.

Burford Capitol Generates $41 Mil in Cash in Six Months | via City A.M.

-Yahoo Finance

July 7, 2014

Preeminent litigation funder Bentham IMF funded a claim for Australian childcare provider, ABC Learning, as they face a suits from lenders, the Federal Government, and employees after collapsing years ago into billion dollar debt. According to this article…

“The liquidators of failed childcare provider ABC Learning have reached a deal with its lenders to help pay workers and reimburse the Federal Government.

ABC Learning collapsed almost six years ago with debts of $1.6 billion.No figure has been put on today’s settlement, but litigation funders Bentham IMF says the Federal Government will recover “millions of dollars” and both it and childcare workers should receive all of what they are owed.John Walker from Bentham IMF says it was a David and Goliath battle between small creditors and banks including CBA, NAB, Westpac and ANZ.”There was funding provided to ensure that the claim could proceed against all of the major trading banks in Australia,” he said.The claims arose because of a move by banks to create a floating charge to protect their security for loans made to ABC Learning.This charge was created in June 2008, a short time before the heavily indebted childcare provider collapsed, and it put the banks at the front of the queue to receive their money back before other creditors.ABC Learning had engaged in a rapid expansion in Australia and abroad using cheap debt but, as the global financial crisis hit and credit availability dried up, the company could not meet its large repayment burden.”

Litigation Funding Helps Childcare Provider Settle Banking Dispute| Yahoo

GM Recall Victims Fund Wide Eligibility | via Yahoo! Finance

Yahoo! Finance – July 2

In continuing news with the current General Motors lawsuit after the company failed to inform consumers of a safety hazards that led to countless deaths, the victims and their families are finally seeing steps in the right direction.

The compensation fund for victims of General Motors Co’s defective ignition switch will be open to a broad range of people, with family members of those who died as a result eligible for at least $1 million, the attorney in charge of the fund said on Monday.

Kenneth Feinberg said that GM will award an additional $300,000 for a spouse and each dependent left behind by a victim who died at the hands of the faulty part. Extenuating circumstances could drive the compensation figures higher. There is no cap on what GM might pay.

Victims who have experienced catastrophic injuries as well as more minor injuries as a result of the switch malfunctioning are also eligible for payment.

Read the full story and learn more about the GM recall on Yahoo! 

GM Recall Victims Fund Wide Eligibility | via Yahoo! Finance

Litigation Funding Industry Facing Opposition in Asia|Legal Finance Journal

The Legal Finance Journal - July 2

Recently read on The Legal Finance Journal website, those working to bring litigation funding to the forefront of the legal industry within the Asian continent are facing difficulties due to spillovers from days of British imperialism.

In the landmark Cyberworks Audio Video Technology Ltd. decision in 2010, a lower Hong Kong court upheld the legality of a liquidating company’s assigning to a third-party funder a share of any proceeds from legal proceedings to collect debts, in exchange for funding for that litigation. It was the first decision in Hong Kong explicitly recognizing assignments by liquidating companies or bankruptcy trustees as a legal exception to maintenance and champerty laws.

The next year, another Hong Kong decision ruling upheld a U.S. bankruptcy trustee’s assignment of debts owed to Hong Kong companies, and the right to sue to collect those debts, to a litigation funder who would share in the proceeds.

Unlike the Cyberworks case, which was grounded in assignment of assets under corporate law, the later decision was based on the argument that firms in liquidation may lack the funds to pursue legitimate debt claims, so the availability of litigation funding works to expand access to justice. Litigation funders would no doubt welcome rulings by higher courts, clarifying any limits to champerty and maintenance laws, or perhaps expanding them.

While Hong Kong is already a world center for arbitration, it’s somewhat unclear whether third-party funding will be allowed in arbitration proceedings. Hong Kong’s Law Reform Commission is studying whether reforms are needed to clarify that issue. Industry advocates, including Fulbrook Capital Management founder and chair Selvyn Seidel, argue that abolishing champerty and maintenance laws would add to Hong Kong’s global cachet for arbitration cases.

Singapore, another Asian arbitration center, also currently bars third-party funding in both arbitration and litigation (legal contingency fees are also illegal), but case law there has created an exception when the third-party funder has a legitimate commercial interest in the dispute. Singapore’s government has also announced it’s studying whether its champerty law should be amended or ended; a favorable decision could expand the presence of third-party litigation funders.

Visit here to read more.

Litigation Funding Industry Facing Opposition in Asia|Legal Finance Journal