Jams Dispute Resolution -- Spring 2012


In This Issue:

IN DEPTH -- Growing Trend of Third-Party Litigation Funding Creates Mixed Opinions; ADR CONVERSATIONS -- JAMS Panelists Receive Prestigious ADR Award; ADR NEWS & CASE UPDATES; DOMESTIC FOCUS -- Good Faith Requirements Must Be Based on Objective Criteria; GOOD WORKS -- JAMS Pays Tribute to Ray Shonholtz, Founder of Partners for Democratic Change; INTERNATIONAL FOCUS -- Germans Propose Law to Increase Use of Mediation; and WORTH READING -- The Social Animal: The Hidden Sources of Love, Character and Achievement.

Excerpt from Growing Trend of Third-Party Litigation Funding Creates Mixed Opinions

Third-party litigation funding, also referred to as third-party financing of lawsuits, alternative claims financing or alternative litigation funding, is a growing business in international arbitration, particularly in Australia and the United Kingdom, and is now being looked at domestically by investors and law firms.

In general, the process involves an outside investor with no connection to the dispute, most likely a corporation that specializes in funding lawsuits or a hedge fund with the same investment strategy. That entity contracts directly with the claimholder (sometimes funders contract with the law firm, but there are fewer conflicts and ethical issues if the contract is between the funder and the claimholder) to provide funding for the claim, and in return, the investor would be entitled to recovery of the principal advanced and a percentage of any recovery. However, in the event a claimant is unsuccessful, the investor would receive nothing.

Please see full newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© JAMS | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.