October 16, 2016
Balmoral Wood Litigation Finance recently launched a US$150 million fund targeting an emerging industry specializing in bankrolling lawsuits – an industry known as litigation finance.
Litigation finance had been on the rise in North America and Europe thanks to a selection of court rulings in key jurisdictions which overturn bans on third-party funding. This “bankrolling of commercial suits” emerged in Canada last year during a case involving Valeant Pharmaceuticals, as an Ontario Superior Court judge ruled the plaintiff could access third-party funding and use the services of a litigation-finance firm.
Senior Associate Myriam Seers discussed the increasingly popular view that litigation finance is “a means of securing effective access to justice” and where the newfound interest is stemming from with PE Hub Canada. Below is an excerpt from the article.
[Seers] said international experience and rulings like Schenk v. Valeant have intensified interest in litigation-finance opportunities and helped validate its role in the legal process.
“Litigation-finance firms often take on claims that could not be pursued otherwise, but only those with a high probability of success,” she said. “They add a lot of experience and value to the process.”
Third-party funding is also seen by many businesses as a valuable risk management tool, Seers said. By helping to remove suits from balance sheets, outside investors provide executives with “another option as they decide how to deploy limited legal spend budgets.”
To read the full article, click here.