Litigation funder jointly liable for indemnity costs, court rules

Litigation funder Therium should be jointly and severally liable for indemnity costs after a specialist currency debt management firm unsuccessfully sued HSBC, the UK High Court has ruled. The funder agreed to back the claim by ECU Group against a number of HSBC entities over allegations that traders used knowledge of ECU’s foreign exchange orders to make a profit between 2004 and 2006, in a practice known as ‘front running’. However, ECU’s claim was ruled to be time barred by Mrs Justice Moulder, who held that the company had ‘sufficient knowledge’ to plead its case in 2006.

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Capping fees will kill collective actions, litigation funder warns

Erik Bomans of Deminor warns that proposals to cap fees from successful cases would ‘kill’ large parts of the collective action market, arguing that a lot of cases will not be funded, defendants will push up the cost of litigation, delaying the case and decreasing access to justice.

Insights

Voss report is unsatisfyingly hollow and narrow

Tets Ishikawa of LionFish criticises the Voss report as “unsatisfyingly hollow and narrow”, pointing out that the reference to funders’ returns being up to 300% or even 3000% is heavily misguided, the report fails to define the claimant group it is seeking to protect, and that it fundamentally misses the real crux of the issue, which is that making losing defendants pay the cost of funding is a far more obvious way to address the issues identified in the report.

In the News

News focus: EU to clamp down on booming litigation funding sector

Opponents of the EU clampdown on the booming litigation funding sector are pointing to the unwinding of similar proposals that were made to regulate the industry in Australia and arguing that legislators pushing for more regulation have failed to understand how the industry operates.

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