Posts Tagged ‘litigation finance’

Liability roundup

  • “Is Arbitration Awful? The New York Times Thinks So.” [New Jersey Civil Justice Institute, earlier here and here] And speaking of that paper, I’m going to miss Joe Nocera’s incisive coverage of the litigation business in his column, often linked here; he’s off to other duties at the Times [Politico/New York]
  • Yet more from the Times, longread on litigation investing and champerty: “Should You Be Allowed To Invest In a Lawsuit?”
  • Mikal Watts through the years: “It was part of my strategy to affect the stock price, which I was very successful at.” [Madison County Record, more]
  • “No negligence liability for injuries by fellow players in contact sport” [Eugene Volokh, martial arts, Colorado Court of Appeals]
  • Defense lawyer claims adversary had advance word about jury deliberations, grabbed $25 million settlement [Chicago Law Bulletin]
  • Is data privacy the next source of mass lawsuits? [Chamber Institute for Legal Reform]
  • Funds needlessly drained: “Asbestos reforms needed to protect first responders and veterans” [Rep. Blake Farenthold, The Hill]

Medical roundup

  • Surprised this story of interstate lawsuit exposure hasn’t had national coverage: “Texas docs threaten to stop seeing New Mexico patients” [Hobbs, N.M., News]
  • More on the Daraprim episode and the fiasco of FDA generic-drug regulation [Watchdog, earlier here and here] More: Ira Stoll/N.Y. Sun;
  • Warrants, HIPAA be damned: Drug Enforcement Administration agents pose as Texas medical board to get at patient records [Jon Cassidy/Watchdog, Tim Cushing/TechDirt via Radley Balko]
  • Litigation finance and champerty: the reaction is under way [MathBabe, earlier on pelvic and transvaginal mesh surgery speculation]
  • No longer alas a surprise to see JAMA Pediatrics running lame, politicized content on topics like “youth gun carrying” [Jacob Sullum]
  • “Shame, blame, and defame”: in alcohol regulation as in other public health fields, government-funded research can look a lot like advocacy [Edward Peter Stringham, The Hill]
  • More adventures in public health: study finds dry counties in Kentucky have bigger problems with methamphetamine [Christopher Ingraham, Washington Post “WonkBlog”]

Medical roundup

  • Study of Type I, Type II error finds FDA much too conservative in drug approval [Vahid Montazerhodjat and Andrew Lo via Tabarrok]
  • Behind push to license/regulate personal trainers in Washington, DC and elsewhere: ACA opened spigot of publicly channeled wellness money [Aaron Davis/Washington Post via Tyler Cowen, Peter Suderman]
  • “Medical lending”: financiers “invest in operations to remove pelvic implants, [reap] payouts when cases settle” [Alison Frankel and Jessica Dye, Reuters]
  • War on Some Drugs again collides with cancer therapy: “Psilocybin, it appears, targets this existential and spiritual distress.” [Ann Althouse]
  • Citing First Amendment, federal court enjoins FDA from prohibiting truthful speech by drugmakers about off-label uses [WSJ, Alex Tabarrok (in recent years, federal government “has extracted billions of dollars in settlements from pharmaceutical firms for engaging in what appears to be constitutionally protected speech”), Beck and Sullivan, Drug & Device Law on Amarin v. FDA]
  • SEIU 1199: “The union that rules New York” [Daniel DiSalvo/Stephen Eide, Daily Beast and City Journal]
  • Controversial therapist who is also anti-vaccine expert witness loses court challenge to Maryland medical license revocation [Beck, Drug and Device Law]

Liability roundup

  • Analyzing the Norton Rose survey numbers: US business faced the most litigation, followed by UK, Canada had least [Above the Law, earlier]
  • Daimler doomsday? “Under the proposed law, any claim against a foreign company that registers with the New York secretary of state could be filed in New York courts, regardless of where the alleged wrongdoing took place or who was harmed.” [W$J, Alison Frankel last year, defense of bill]
  • BP Gulf spill: “Seafood companies owned by man previously convicted of fraud accused of perpetrating $3 million Deepwater Horizon fraud” [Louisiana Record]
  • “Facing Sanctions, Law Firm Tries To Block Interviews With Thalidomide Clients” [Daniel Fisher]
  • Litigation finance: speculator’s handling of Beirut car bombing payout raises eyebrows [W$J via Biz Insider]
  • “American Energy Companies Latest Victims of TCPA Lawsuit Abuse” [Chamber’s Institute for Legal Reform] “FCC Has A New Robocall Ruling, And It Doesn’t Look Pretty for Business” [Henry Pietrkowski]
  • Bad US idea reaches Canada well after peaking here: “Tobacco companies ordered to pay $15B in damages” [CBC]

Law enforcement for profit roundup

  • Missouri law incentivizes local ticket-writing, Illinois not so much. Guess how municipalities respond? [Jesse Walker] “Ferguson’s Court Fine Scandal Arose Because Of Its Bloated Government” [Scott Beyer; earlier on fines and fees in Ferguson here, here, here, here, here, here, here, etc.] “Nassau’s top cop orders retraining of officers who write fewest tickets” [Newsday via @GoLongIsland]
  • Maryland House passes forfeiture reform 81-54, with nearly all GOPers voting against the property rights side [my Free State Notes post, Maryland Reporter and more (Baltimore County Del. and former police officer John Cluster “said he hadn’t seen a single case of abuse in his time”), Jason Boisvert]
  • “Quiet change expands ATF power to seize property” [Adam Bates, Cato]
  • Meanwhile on the civil side, hedge funds place heavy bets on litigation finance [Paul Barrett, Business Week]
  • In news that will surprise few libertarians, debt collection on behalf of government agencies is fraught with problems [CNN project overview links to individual stories]
  • Among its numerous other problems, pending “human trafficking” bill would establish a fund to cycle fines back to law enforcement and victim advocates [Elizabeth Nolan Brown, Reason]
  • Investigation into forfeiture in Indiana [Indianapolis Star]

The New Age of Litigation Finance

On Thursday I was a panelist at the Federalist Society National Lawyers’ Conference discussing the rapid rise of litigation funding — specifically, well-capitalized firms that advance money to plaintiffs in commercial high-stakes litigation, often in exchange for a share in the proceeds. (A separate wing of the litigation finance business, which was not the panel’s primary focus, advances smallish sums to individual injury plaintiffs at high interest rates in a sort of analogue of payday lending.)

My opening remarks speculate about the future emergence of divorce trolls — excuse me, “marital rights assertion entities” — set up to buy out an ex-spouse’s stake in ongoing matrimonial strife and play it for maximum extraction value. While no one has yet rolled out that kind of business model, note that outside financiers have indeed begun to fund divorce litigation.

More seriously, I went on to argue that the rise of patent trolls and mass tort operations prefigures problems we are likely to see emerge from litigation finance, from the encouragement given to low-value claims to a settlement process skewed by the interests of the funders rather than the original disputants, and suggest that the age-old rules against champerty, maintenance and barratry might owe something to an appreciation of such dangers. A link to the video is here.

More: Check out Roger Pilon’s post on what else Cato people were up to at the Mayflower last week.

Ethics roundup

  • His own bad deal to make: client can’t sue lawyer for malpractice after lawsuit lending swallows up proceeds of $150K settlement [BNA]
  • U.K. legal representation: “John Flood looks at the cab rank rule” [Legal Ethics Forum, more]
  • Drumming up business: “Junk fax class action may proceed despite attorney misconduct” [Reuters]
  • “Personal Injury Lawyers Sue Other Personal Injury Lawyers Over Solicitation” [Turkewitz, more]
  • Manipulating time records to qualify for bonus proves costly for Wisconsin attorney [Volokh]
  • Lawyer profile: “Defender of the Notorious, and Now Himself” [NY Times]
  • Local prosecutors connive at debt-collection abuses thanks to 2006 legal provision [LA Weekly]

February 22 roundup

  • Florida courts allow probe of finances of MDs who treat many injury plaintiffs [Dolman Law Group; Crable v. State Farm]
  • Booster clubs: “Does Title IX Reach Voluntary Donations?” [Joshua Thompson, PLF, earlier here, here]
  • Freedom to Discriminate in Choice of Roommates: 9th Circuit case of Fair Housing Council v. [Eugene Volokh; related from David Bernstein h/t commenter wfjag]
  • PI firm employee “disliked sending clients to [chiropractors] because insurers were more reluctant to settle those claims” [ABA Journal]
  • “Bill introduced to de-criminalize the Lacey Act” [Paul Enzinna, PoL; earlier on Gibson Guitar and wood imports here, here] More: on the raids [Balko]
  • “Australia: A Cautionary Tale of Litigation Financing?” [WSJ Law Blog]
  • Constitutional law book review: Jay Wexler, “The Odd Clauses” [Greenfield, Lowering the Bar]

January 23 roundup

  • Copyright violations on PIPA sponsors’ websites? [VICE] “A SOPA Analogy” [David Henderson]
  • DEA agent who mistakenly shot self loses appeal [BLT, earlier]
  • “And people say libertarians lack empathy”: AP adopts pre-emptively disapproving tone toward advances in pain control [Coyote; related, Alkon on Primatene Mist]
  • Cordray, NLRB recess picks allow President to reward key Democratic interest groups [Copland, Examiner] Litigation Lobby gunning for ban on consumer finance arbitration as Cordray priority [CL&P] Mike Rappaport on the recess appointment clause [LLL, earlier here, etc.]
  • Keystone’s just the half of it: US environmental funders push shutdown of Canada energy production [Vivian Krause, Financial Post]
  • Hot potato, or just hot business sector? “Credit Suisse Parts with Litigation Finance Group” [WSJ Law Blog]
  • Speaking of shoplifters in elected office [Harrisburg Patriot-News on Perry County, Pa. case h/t commenter A.A.; earlier on California case]

December 30 roundup