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New Environment in Litigation Funding

N E W S    R E L E A S E

Date: 9 February 2012

New Environment in Litigation Funding

Tips the Balance in Clients’ Favour

 

A flurry of recent activity in the UK Litigation Funding market has grabbed the headlines in the legal press, with new funders entering the market and the publication of a voluntary Code of Practice for UK Litigation Funders.

London-based Commercial Litigation Funding Limited (CLFL) has welcomed the recent Code as it will allow potential clients to select relevantly-accredited litigation funders most suitable to their needs.

CLFL’s MD, Ben HawkinsHawkins, explains: “The launch of the new voluntary conduct code is something that has been long overdue as it sets a new barrier for compliance that should have been in effect from the start. This offers potential clients simplicity and ease in selecting properly-qualified companies to work with, and which are right for their case.

“And that’s the point: the shift in environment that is demonstrated by the new market entrants will see the Code of Practice introduce a more competitive landscape. The emphasis of this new landscape will be finding the right funder rather than hoping to find any funder who is able and willing to get involved. The market is maturing and the client finally matters.”

Educating clients on how to select the right funder for their case will be the focus and this new Code gives a helpful start by including provisions to ensure funders not only have enough funding capital to cover liability but can only withdraw that funding from a case when absolutely necessary.

Ben continued: “A funder’s expertise in particular case types is of growing importance and clients should be aware of this when selecting which funders to approach. Those funders who review statistical case factors that can be used with confidence and rely on their experience to reach funding decisions are better placed to act in the client’s interests over those who simply look at the currently available facts of a case and judge whether it is worthwhile on that basis.”

Companies which have generated large investments in exchange for the promise of attractive returns cannot afford to leave those funds idle or use them in non-winning cases, so there is always an added pressure from investors to find those cases to support. . This pressure can then lead to micro-management of cases, making for a painful risk assessment process at a time when the main priority should be progress in the litigation itself.

Ben Hawkins comments: “Service levels must come to the fore. Litigation Funding is a challenging and complex process, but few funders are able to put this in the context of what it is: an important part of a bigger picture which is the litigation itself. Insurance-based litigation funders like us, who work on a portfolio approach, may succeed in differentiating themselves from competitors by being able to provide creative funding solutions for some cases where companies need funding quickly or are concerned about meeting investors’ unrealistic or unreasonable returns.

“In conclusion, we at CLFL welcome this new Code of Practice for UK Litigation Funders because it will not only encourage competition and motivate solicitors and clients, it will also empower them to make choices rather than opting out of the whole process due to their funders expecting to call the shots and, in some cases, matters costing far too much money.”

For those interested in learning more about litigation funding and taking advantage of CLFL’s consultation services, Ben Hawkins can be contacted on 020 3051 8645 or via email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Alternatively, visit www.litfunding.co.uk for more information.

 

 

 

CLFL launches Arbitration Funding

NEWS RELEASE

October 2011

Commercial Litigation Funding Limited Launches Arbitration Funding Facility

London-based Commercial Litigation Funding Limited (CLFL) has recently launched a specialist provision to facilitate arbitration funding for cases across the country.

Developed in collaboration with its global law firm clients, the funding facility was set up by CLFL in September 2011 to provide clients with specialist Legal Due Diligence work in advance of arbitration cases.  With its in house experience and in conjunction with a panel of specialists, CLFL’s expertise in securing funding for these cases often unlocks the ability for lawyer and client to continue towards resolution of a particular dispute.

CLFL’s intimate knowledge of the Arbitration process has enabled it to develop a bespoke approach to funding, which includes innovative features such as mediation or adjudication costs as part of a multi tiered dispute resolution mechanism.

Eva Kizlo, Business Development Manager at CLFL, said: “With an ever increasing number of high value and complex arbitration cases and a growing number of investor disputes, particularly with the recent economic climate, arbitration funding has risen. When representing a client on an investor/state arbitration case, Magic Circle and global law firms are usually more open to negotiate the possibility of working on a conditional fee agreement (CFA) and, as a result, third party funders are increasingly more willing to fund cases such as these.”

Ben Hawkins, CLFL’s MD, continued: “We are always looking for ways to make commercial litigation and arbitration funding as simple as possible so, by offering much-needed advice and best practice specifically suited to client’s and case needs, we are ensuring funding is secured quickly and safely, without risk. We often see the need for Arbitrators’’ costs to be paid in advance as a trigger to seek funding, and it requires specialist knowledge to risk assess the case quickly and effectively and to add value as well as simply funds to the process. Our arbitration funding facility can provide the best possible results with a minimum of hassle.”

Where CLFL requires after the event insurance (ATE), in appropriate circumstances this may be arranged by independent insurance broker Litigation Protection, for whom CLFL is a Financial Services Authority (FSA) Introducer Appointed Representative.

Since its launch last month, CLFL’s arbitration funding facility has received four enquiries, two of which include arbitration at International Centre for Settlement of Investment Disputes, one at International Chamber of Commerce International Court of Arbitration in Amsterdam and the last at Cairo Regional Centre for International Commercial Arbitration.

Anyone interested in learning more about arbitration funding can now take advantage of CLFL’s consultation services by contacting Business Development Manager Eva Kizlo on 020 3051 8645 or via email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Alternatively, visit www.litfunding.co.uk.

 

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COMMERCIAL LITIGATION FUNDING EXPAND TEAM FOLLOWING SUCCESSFUL BUSINESS DEVELOPMENT

London-based Commercial Litigation Funding Limited (CLFL) has expanded its niche commercial litigation funding expertise with the promotion of Ben Hawkins as well as the appointment of Sade Rotibi and Eva Kizlo.

Ben Hawkins has taken over as Managing Director and Sade Rotibi and Eva Kizlo were appointed as a result of extensive growth within the company’s client portfolio. Prior to joining CLFL, Ben Hawkins practiced as a litigation solicitor for six years before pioneering after the event insurance with the launch of DAS’ ATE insurance division (now 80e) in 2000. His new position as Managing Director sees him take responsibility for maintaining CLFL’s profitable business development.

Sade, who brings with her three years’ litigation experience, is CLFL’s Litigation Process Executive and is responsible for managing legal due diligence and monitoring and supporting CLFL’s new business drive. Fluent in Spanish, Sade achieved her LLB degree in 2006 and went on to work for CEDR Solve at the Centre for Effective Dispute Resolution before moving into commercial and civil litigation with City law firm Sprecker Grier Halbertam.

Eva joined CLFL as Business Development Manager and will use her three years in-house expertise with a leading Russian steel industry giant and previous top law firm in Latvia plus her extensive international commercial claims advisory experience, to increase the company’s rapidly expanding commercial client portfolio. She will also take sole responsibility for managing and developing close relations with UK and international law firms in addition to identifying litigation and foreign arbitration cases and exploring co-operative opportunities with brokers and law firms in Switzerland, Luxembourg, Russia and Singapore as well as at home in the UK. Eva said of her appointment: “Litigation funding is on the up so there is a real appetite from commercial businesses for help in paying case costs. I’ve worked with commercial litigation firms before so I understand the importance of offering clients the best deal at the right price. I accepted this position because I feel that I can build upon CLFL’s current success by informing commercial businesses about the advantages on offer to them through commercial litigation funding, such as what we provide our clients.”

Ben Hawkins said: “We have enjoyed great success so far this year, which has resulted in us winning new clients and experiencing a substantial increase in work both within the commercial litigation and ATE insurance fields. To ensure we continue to deliver the high standard of service each of our clients expects, our team has been expanded to include dedicated experts with a sound knowledge and commitment to the commercial litigation funding sector. Effectively, we work with the founding shareholders to provide the support and experience required to act upon potential cases quickly and efficiently.”

 


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