Tag Archives: litigation finance contract

Proceeds and Taxes

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The draft model treats taxes owed by the Plaintiff as a result of receiving the Proceeds differently depending on whether the Proceeds result from a judgment or a settlement. If the Proceeds result from settlement, a Litigation Proceed Right is … Continue reading

Proceeds and Costs

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The proceeds payment of the securities financing contemplated by the draft model is fundamentally different than the standard non-recourse loan. In the traditional approach, the lender (funder) is repaid the loan principal, which represents the costs of the litigation (or … Continue reading

Security Interests in the Model Contact

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Like the traditional non-recourse financing, the model contract provides no security the funder will receive anything if the litigation proves unsuccessful. However, the contract creates security interest(s) in favor of the funder, for after the proceeds exist. First, the funder … Continue reading

Incorporating the Claim

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As Michael J. Kaufman pointed out, the financing instrument at the heart of the draft model could be issued by an entity instead of the plaintiff. Different advantages and challenges flow from different structures; he identified two. As we wind … Continue reading

Structuring the Issuer

I have reviewed the draft Model Litigation Financing Contract proposed by Professor Steinitz and Ms. Field. I commend them on their hard work, sophisticated scholarship and ingenuity in developing their proposed Contract. I also applaud their willingness to invite others … Continue reading

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