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Last month, Judge Bencivengo of the Southern District of California, joined an ever-growing list of federal judges around the country finding materials prepared by, for and with litigation funding entities fit squarely under the umbrella of attorney work product protection and thus cannot be disclosed to an adversary during litigation. Impact Engine, Inc. v. Google LLC, Case No. 3:19-cv-01301, Dkt. No. 129 (S. D. Cal. Jul. 17, 2019). At its core, the work product protection…
Most law firm pitches are heavy on the lawyers’ experiences and record, but leave out a really crucial part of the litigation: its resolution. This article will concern using analytics on litigation resolutions to pick the right counsel and to demonstrate a legal department’s value as a profit-generating department, not just a cost center. By Joshua Libling It’s time for some math. Modeling math! No, don’t stop reading! Most law firm pitches are heavy on…
Lawyers and clients alike will benefit from the State Bar committee’s guidance on how to safely navigate the ethical rules while preserving litigants’ access to the courts. Originally Printed in The Recorder October 21, 2020 https://www.law.com/therecorder/2020/10/21/california-bar-simplifies-lawyers-obligations-to-clients-in-funded-matters/ The State Bar of California is the latest to weigh in on the ethical issues that arise for lawyers when a client seeks third-party funding. Formal Opinion No. 2020-204 reflects the relatively well-established use of litigation funding in the…
We’ve previously written about the two “bread and butter” litigation finance products: single-case financing and portfolio funding. Which one is right for you? Lots of times, single-case funding is the way to go. But other times, a law firm comes to us seeking single-case funding for one client but ends up entering into a law firm portfolio deal instead. Here are four reasons why requests for single-case funding sometimes morph into portfolio deals: 1.…
Article originally printed in Texas Lawyer, September 16, 2020 In early June, we looked at the impact of COVID-19 and collapsed oil prices on Texas businesses. At that time, forecasts indicated continued losses in the energy, health care, legal and other sectors, more layoffs, and an uptick in commercial litigation inside and outside of the bankruptcy courts. As we close out the third quarter and the economy cautiously reopens, many of these predictions have…
By William C. Marra, Investment Manager When asked how he went bankrupt, one of Ernest Hemingway’s memorable characters in “The Sun Also Rises” replied, “Gradually, then suddenly.” The same may soon be said for how the business of law got transformed. Last week, after years of mounting calls for reform, the Arizona Supreme Court abolished Rule 5.4 of the Arizona Rules of Professional Conduct, which prohibits lawyers from sharing fees with nonlawyers. Rule 5.4 is…
When reading fiction, some of us love a mystery.  But when evaluating financial service offerings, probably not so much. One thing may feel mysterious to lawyers and companies seeking funding: How do funders select the cases they invest in? To many, the process may seem high on subjectivity and low on transparency and if prospective litigation finance clients don’t understand how funders make decisions, they may struggle to present their case in the best light…
By Wendie Childress and Amber Stewart Litigation finance aims to promote equity in our judicial system and provide access to the courts, regardless of any financial disparity between litigants. Attorneys and clients in the U.S. are turning more and more to funding to obtain the financial resources to bring meritorious claims to trial, which is especially important in the current economic climate. On August 3, 2020 for the first time since 2012, the ABA published…
By Wendie Childress and Amber Stewart Litigation finance aims to promote equity in our judicial system and provide access to the courts, regardless of any financial disparity between litigants. Attorneys and clients in the U.S. are turning more and more to funding to obtain the financial resources to bring meritorious claims to trial, which is especially important in the current economic climate. On August 3, 2020 for the first time since 2012, the ABA published…
Hedge fund Elliott Management’s funding of a lawsuit by video startup Eko against rival Quibi entailed a grant of Eko’s equity to Elliott. Eli Schulman, of Validity Finance, says contemporary litigation funders can offer a lifeline to startups that are unwilling—or unable—to allocate resources to legal costs, all without requiring founders to part with their hard-earned equity. One of the most talked-about entertainment startups today is Quibi, a mobile-only entertainment platform founded by Jeffrey…