Video is exclusive to members, sign up now to enjoy this and many other features.

What is a Litigation Case

Investment Manager at Omni Bridgeway

IP Interview
Published on December 1, 2020
Omni Bridgeway

Why is this interview interesting?

  • The parties involved and value proposition for financiers in litigation cases
Executive Bio

Ruth Stackpool-Moore

Investment Manager at Omni Bridgeway

Interview Transcript

How would you define a litigation case?

Effectively, a litigation case involves disputing parties. They might be single parties, in opposition, or they might be groups of parties. That might be in the litigation context itself, which is a public forum, so in courts. In might be in a private dispute resolution context, which is arbitration. It might be in an insolvency context, where you have got insolvency practitioners, creditors and others involved. There is really a whole range of scenarios in which you would have litigation or arbitration cases arise.

In terms of what value we add and how we become involved – in the past, typically, funding was developed as an access to justice type tool, so for parties to a dispute who couldn’t afford to bring their proceedings. Often, that might have been in the insolvency context or simply people who, through various circumstances, had been forced into a position where they didn’t have the money to bring their claim. They would look for a funder to allow them to pursue their claim and, hopefully, ultimately recover.

What has developed in the industry since then and which I think is the major value proposition that we have now, is that third-party funding represents a cash management and risk allocation tool for companies, whether they have the money to pursue their proceedings or not. That is not necessarily the central question. Really, what they are thinking about is their business strategy. Do they want to spend their balance sheet on these proceedings and what will they have to spend to pursue their claims? Normally, that would be juxtaposed with, do they want to spend that on their business?

Now, what they can do is, they can use our finance for the legal claims and use their own money for their business. In some circumstances, they can even get working capital from us, to invest in their core business operations while, at the same time, being able to pursue their case.

Sign up to test our content quality with a free sample of 50+ interviews

Copyright Notice

This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.

IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.

In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities.

© 2024 IP 1 Ltd. All rights reserved.