UK court issues landmark ruling to increase exposure of litigation funders
21st Nov 2016
In a landmark ruling, the English Court of Appeal increased the liability exposure of third party litigation funders in cases in the UK that don’t succeed.
“The case involved a group of litigation funders, including two from the US, who financed a disastrous $1.6 billion case brought by a small energy venture against two US oil companies”, writes The American Lawyer. As a result of the ruling, the funders “will be forced to pay the defendants’ legal costs of more than $24.7 million”.
“The Court of Appeal’s ruling should serve as a warning to third-party funders of the potential perils of financing expensive international litigation without carrying out a rigorous analysis of the claim, the party to be funded and the witnesses who will support the claim”, said Jones Day partner Stephen Pearson.