Happy Friday! This week I dug into a complex dispute between a funder and one of its clients.
I’ve written many times about funders and clients battling over funding arrangements. This particular instance has a lot of twists and turns and involves a particularly interesting underlying dispute.
The family of Uthman Khatib is in arbitration with LitFin Capital, a company that funded a suit to collect 1,800 works of art (including a piece by Kandinsky) they say was stolen in 2019.
A typical funding arrangement involves the funder taking part of an award. But since the pieces of art are illiquid assets, that’s not so straightforward in this case.
The family asserts LitFin asked for them to be removed from the claim and suggested it would work directly with Dentons lawyers on the case.
The question of whether funders can assert control in litigation comes up a lot when opponents push for regulation of the industry. It’s a winding tale that puts a focus on some of the clashes that can erupt. Read More
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What I’m Reading
Politico’s Inside Congress newsletter on Wednesday suggested there was a potential revival of Sen. Thom Tillis (R-NC) litigation finance tax bill that was excluded from the reconciliation package. Business groups, insurers and advocacy groups are lobbying house republicans to impose the tax. John Shelton of Mike Pence’s group Advancing American Freedom weighed in and said it’s possible they’ll try to pass muster with the parliamentarian or search for another vehicle.
The Financial Times reports that the founder of London-based law firm Pogust Goodhead was pushed out after tension with it’s litigation funder, Gramercy. Gramercy put up more than £450 million to finance a class action suit against mining group BHP.
The Law Society Gazette wrote about a survey commissioned by industry trade group the International Legal Finance Association (ILFA). Stack Data Strategy on behalf of ILFA surveyed 765 UK Business leaders in June and the responses indicated that business leaders are generally supportive of the effect of litigation funding on the business environment.
Commentary & Opinion
When Top Lawyers Earn $30 Million, Who Pays?: Chris Bryant
Lawyers have always been well paid, but the riches now available to top performers would make most Premier League soccer players blush, with some legal rainmakers reportedly earning more than $30 million a year.
Engaging Outside Firms Should Create Value, Not Drive Up Costs
Casepoint’s chief revenue officer shares best practices on how corporate legal leaders can collaborate with outside counsel to meet business goals.
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