Big-hitting defendant solicitors were rather quick to proclaim the demise of the Arkin cap, following Snowden J’s judgment in Davey vs Money last month. They’re in good company. In his 2010 Review of Civil Litigation Costs, Jackson LJ said that funders should be fully liable for adverse costs. Others argue that the Arkin cap’s generosity to funders drove the exponential growth of the funding market and in particular the phenomenal performance of Burford. Continue reading
London international disputes week was a celebration of London’s standing as a disputes forum, past present and future. In the London courts, we clearly have a product that has stood the test of time and remains trusted by international parties to resolve their disputes in a fair and rigorous way. Continue reading
There are many ways to price litigation funding transactions, and different funders and their investors may employ different methods even for the same investment. In this piece and a preceding part 1, I explain one method of pricing single case investments using a simplified fundamental analysis where “risk” is reduced to a straight percentage chance of winning or losing (which is obviously a simplified view of the world of litigation funding). I then look at pricing from the other end of the equation to determine what a funder’s pricing may imply about the risk of a case. Finally. I turn to some real-world applications of implied risk to explain why it is often irrational for funders to abandon cases, and whether funders are too expensive. Continue reading