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Thread: Funding litigation, investment opportunity? Bentham USA, Trial funders

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    Funding litigation, investment opportunity? Bentham USA, Trial funders

    Lawyers and the Ick Factor
    "[ ... ]In an innovation known as litigation finance, a company with no connection to a commercial lawsuit provides money to support one of the parties in the case, in exchange for a share of the proceeds if the party wins—effectively investing in the lawsuit. For some, it is the latest evidence that the legal profession has been reduced to the business of lawyering, with money regularly serving as the measure of success.
    [ ... ]
    A new venture called Bentham USA, the American branch of the Australian firm that pioneered commercial litigation finance (and was named after the English utilitarianism evangelist), made a deal with Radcliff: Calling the money an investment rather than a loan that had to be repaid, the firm gave him $2.25 million, so he could pay off his and his wife’s debts and start a new business. In exchange, he committed to repaying that amount if he won on appeal and, in addition, to paying a fee of double that amount. He also agreed to let Bentham pick a top-rated appeals lawyer to defend him against State Farm’s appeal, in exchange for Bentham providing about two hundred and twenty thousand dollars to pay the lawyer’s fee.

    http://www.newyorker.com/news/news-d...the-ick-factor

    https://trialfunder.com/index.php

    https://www.trialfunder.com/press/lit_funding_518.pdf

    http://www.scpr.org/news/2015/05/20/...nd-social-jus/

    http://www.imf.com.au/about-us/bentham-usa
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    Campaign Veteran skidmark's Avatar
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    Do you have anything specific to say about how this might apply to OC, or RKBA in general, or even 4A issues arising out of OC/RKBA activity?

    Are you wondering if this would pass legal muster?

    Would you like to discuss how much this mirrors the TV show "Shark Tank"?

    But speaking of TV, this concept and firms who offer it has been advertised in prime time for several years, which would make it "not news".

    stay safe.
    "He'll regret it to his dying day....if ever he lives that long."----The Quiet Man

    Because stupidity isn't a race, and everybody can win.

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    It is not prepaid litigation insurance. It is not posted as news, but as an interesting new investment opportunity for activists.

    When I have a question then I end the sentence with a question-mark. In my career it was suggested that no question be asked unless I could discern the lie or the error.

    I do not watch TV and avoid TV-culture as I can, having better things to do with my good-life.
    Last edited by Nightmare; 07-12-2015 at 11:02 AM.
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    Accomplished Advocate user's Avatar
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    It's illegal in Virginia, a crime for all parties involved.
    Daniel L. Hawes - 540 347 2430 - HTTP://www.VirginiaLegalDefense.com

    By the way, nothing I say on this website as "user" should be taken as either advertising for attorney services or legal advice, merely personal opinion. Everyone having a question regarding the application of law to the facts of their situation should seek the advice of an attorney competent in the subject matter of the issues presented and licensed to practice in the relevant state.

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    Quote Originally Posted by user View Post
    It's illegal in Virginia, a crime for all parties involved.
    A champertous contract? With due deference, a publicly accessible citation, please, to Virginia law.
    I am responsible for my writing, not your understanding of it.

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    Campaign Veteran skidmark's Avatar
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    Quote Originally Posted by Nightmare View Post
    It is not prepaid litigation insurance. It is not posted as news, but as an interesting new investment opportunity for activists.

    When I have a question then I end the sentence with a question-mark. In my career it was suggested that no question be asked unless I could discern the lie or the error.

    I do not watch TV and avoid TV-culture as I can, having better things to do with my good-life.
    So you are saying that the header in your post was your question? Must have missed that due to the lack of verbs.

    But, pressing on -

    what are the odds of recovery in cases you see "investing" in? What are the odds of recovering more than fees and allowable expenses? If the odds are favorable for recovering more than fees and expenses, what do you see as the potential rate of return?

    Answer presuming that user's assertion only holds true for Virginia and this concept were exercised in some other state.

    stay safe.
    "He'll regret it to his dying day....if ever he lives that long."----The Quiet Man

    Because stupidity isn't a race, and everybody can win.

    "No matter how much contempt you have for the media in all this, you don't have enough"
    ----Allahpundit

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    Campaign Veteran skidmark's Avatar
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    Quote Originally Posted by Nightmare View Post
    A champertous contract? With due deference, a publicly accessible citation, please, to Virginia law.
    Poissibly more than you ever wanted to know:

    Seems the University of Pennsylvania Law Review sees the practice as having growth potential. http://scholarship.law.upenn.edu/cgi...enn_law_review

    William & Mary Bill of Rights Journal sees the same thing. http://scholarship.law.wm.edu/cgi/vi...context=wmborj

    And SOTUS seems to think prohibiting it violates certain constitutional rights. https://en.wikipedia.org/wiki/NAACP_v._Button

    So does the Vanderbilt Law Review. http://www.vanderbiltlawreview.org/c...v.-61-2011.pdf

    The Commonwealth of Pennsylvania still sees it as an affront to public policy. http://www.bna.com/champerty-remains...-n12884909902/

    A short discussion of the differences between champerty and maintenance and why the distinction may be important. http://gluedideas.com/content-collec...mperty_P1.html

    All that being said - Virginia is still agin' it:
    http://law.lis.virginia.gov/vacode/t...ction18.2-452/ and following.

    stay safe.
    "He'll regret it to his dying day....if ever he lives that long."----The Quiet Man

    Because stupidity isn't a race, and everybody can win.

    "No matter how much contempt you have for the media in all this, you don't have enough"
    ----Allahpundit

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    Quote Originally Posted by user View Post
    It's illegal in Virginia, a crime for all parties involved.

    Pity. One of the most famous trials in history involved a third party paying.

    Cicero. Ancient Rome.

    Sextus Roscius was accused of parricide (killing his father. The penalty was being tied naked in a sack with certain animals and drowned.)

    The youthful Cicero was the defense counsel. He decided that henchmen of the dictator were likely responsible for the murder--in order to obtain the dead mans multiple farms. And, that it was likely they that tried to throw the blame on the son Sextus.

    Cicero, through skillful questioning, uncovered that one henchman bought one of the farms at fire-sale prices. Another became overseer of a couple farms.

    Cicero hammered one point: qui bono? Who benefits?

    Sextus Roscius walked, a free man.
    I'll make you an offer: I will argue and fight for all of your rights, if you will do the same for me. That is the only way freedom can work. We have to respect all rights, all the time--and strive to win the rights of the other guy as much as for ourselves.

    If I am equal to another, how can I legitimately govern him without his express individual consent?

    There is no human being on earth I hate so much I would actually vote to inflict government upon him.

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    Regular Member OC for ME's Avatar
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    Henchmen of the dictator...hmm...interesting. No wonder it's illegal in VA, wouldn't want the dictator to be at a disadvantage, in his own court, now would we...
    "I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it." - Thomas Jefferson.

    "Better that ten guilty persons escape, than that one innocent suffer" - English jurist William Blackstone.
    It is AFAIK original to me. Compromise is failure on the installment plan, particularly when dealing with so intractable an opponent as ignorance. - Nightmare

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    More lawyers getting rich. I try to limit my time and my investments as far away from lawyers as possible.
    My .02

    CCJ
    " I detest hypocrites and their Hypocrisy" I support Liberty for each, for all, and forever".
    Ask yourself, Do you own Yourself?

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    Campaign Veteran skidmark's Avatar
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    Quote Originally Posted by countryclubjoe View Post
    More lawyers getting rich. I try to limit my time and my investments as far away from lawyers as possible.
    My .02

    CCJ
    I'm not sure the folks offering funding are lawyers, or even attorneys.

    It's speculation, like grubstaking a '49er. If he hits it rich you share the wealth. (Some states have major heartburn over that.) If he strikes nothing but sand you have lost your investment.

    Most of the ads I have seen/heard about this indicate that you need to already have a case in the courts and require your attorney to contact them to discuss the facts of the case before they will consider grubstaking you. Often the pitch is that some person suffering from a "personal injury" and awaiting settlement* of their case is running into financial difficulties that the company will help meet (by giving you some cash up front) in return for some assignment of "winnings". I cannot recall one that did not stress that "if you lose your case you owe nothing".

    stay safe.

    * - I am actually old enough to remember when ambulance chasing contingency attorneys were social pariahs who did not show their face in public. Often they would claim to be piano players in a house of ill repute rather than admit their true occupation. Now they are all over the place telling you that you need to "get all that you deserve".
    "He'll regret it to his dying day....if ever he lives that long."----The Quiet Man

    Because stupidity isn't a race, and everybody can win.

    "No matter how much contempt you have for the media in all this, you don't have enough"
    ----Allahpundit

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    Ok remember this ad? J.G. Wentworth, GET CASH NOW.

    Aren't most attorney's in civil litigation practice, receiving 33% of any settlement?

    Regards

    CCJ
    " I detest hypocrites and their Hypocrisy" I support Liberty for each, for all, and forever".
    Ask yourself, Do you own Yourself?

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    Regular Member Logan 5's Avatar
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    Typically, but I know of several instances where 50% was expected, with the worst being $40,000 up front PLUS the 33%.
    It's good to see a new option in fight abusive cops.
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    Campaign Veteran skidmark's Avatar
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    Quote Originally Posted by countryclubjoe View Post
    Ok remember this ad? J.G. Wentworth, GET CASH NOW.

    Aren't most attorney's in civil litigation practice, receiving 33% of any settlement?

    Regards

    CCJ
    Sorry, Joe, but they work a different angle. You already have a settlement that pays out monthly but want a chunck of it now to buy that new car or whatever. They buy all or part of your settlement and have to wait for the monthly payments -- so they add interest.

    stay safe.
    "He'll regret it to his dying day....if ever he lives that long."----The Quiet Man

    Because stupidity isn't a race, and everybody can win.

    "No matter how much contempt you have for the media in all this, you don't have enough"
    ----Allahpundit

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    Campaign Veteran skidmark's Avatar
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    Quote Originally Posted by Logan 5 View Post
    Typically, but I know of several instances where 50% was expected, with the worst being $40,000 up front PLUS the 33%.
    It's good to see a new option in fight abusive cops.
    That sounds strange. Contingency agreements I have heard about are x% for the lawyering and then expenses which almost magically work out to about a third of whatever settlement was reached.

    The thing about contingency agreements is they are the attorney's way of telling you what your chances are for reaching a settlement.

    stay safe.
    "He'll regret it to his dying day....if ever he lives that long."----The Quiet Man

    Because stupidity isn't a race, and everybody can win.

    "No matter how much contempt you have for the media in all this, you don't have enough"
    ----Allahpundit

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