One of the biggest challenges in litigation finance is striking the right balance of risk between litigants and funders, consistent with the norms of the legal system and the ethical duties constraining counsel. Striking the right balance increases the chances … Continue reading
For the reasons discussed below, we are amending our draft model contract to make the default provision when bridge financing becomes necessary to be good faith negotiations. However, we leave intact, as an alternate, the concepts of Accelerated and Supplement … Continue reading
We begin this blog post with a few suggestions on nomenclature. For purposes of this post, we introduce the use of the terms “triad” and “dyad” to discuss and differentiate the possible combinations and permutations of conflicts inherent in any … Continue reading
It seems that, collectively, we have identified some challenges to the milestone concept for litigation funding – at least in the market as it currently operates. First, we seem to agree that the litigation funding market today is quite thin. … Continue reading
In his comment to the Accelerated Investment concept, Mr. Reilly objected to the idea that the funder should be forced to prematurely purchase Litigation Proceed Rights with capital committed to future closings. His core reason was fairness-based: the funder is … Continue reading
As previously discussed, the nature of legal claims as assets is such that plaintiffs can be deeply destabilized if funding runs out between milestones. In addition, litigation costs can be very uncertain, and it is hard to accurately estimate in … Continue reading
A “milestone” is a point at which a significant amount of information about the riskiness and value of an investment has been revealed. The information revealed is of three sorts: first, about the performance of the underlying asset; second, about … Continue reading
