Posts Tagged ‘litigation finance’

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. Roommate.com [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: Reason.tv 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

October 13 roundup

  • Behind the antitrust assault on Google [Jerry Brito, Josh Wright, more]
  • Rapid rise of lawsuit lenders [WSJ] And a Searle Civil Justice Institute conference on third party financing of litigation;
  • More law firms muscle into class action against e-book publishers [PaidContent] Fifth Circuit questions cy pres [Trask] And a new edition of the Federalist Society’s Class Action Watch is out;
  • When the house painters announce they’re not leaving: “Britain plans to tighten anti-squatter laws” [NYT]
  • “Courts Call Out Copyright Trolls’ Coercive Business Model, Threaten Sanctions” [EFF] “Righthaven’s Copyright Trolling is a Bankrupt Idea” [Cit Media Law] More: Vegas Inc.
  • “Twombly is the Logical Extension of the Mathews v. Eldridge Test to Discovery” [Andrew Blair-Stanek via Volokh, Frank] “Four more reasons to love TwIqbal” [Beck] “O’Scannlain says 9th Circ has adopted ‘Iqbal lite’ pleading standard, ‘Same insufficient complaints, fewer dismissals!'” [@ScottKGraham on dissent in Starr v. County of Los Angeles, PDF]
  • Florida farms sell raw milk as (wink) “pet food” [Sun-Sentinel]

July 22 roundup

  • Illinois prisoner sues for land to start his own country [AP]
  • “Have you got a piece of this lawsuit?” Important Roger Parloff piece on litigation finance [Fortune, now out from paywall] “Hedge Funds Finance Medical Malpractice Claims” [Jeff Segal, Michael Sacopulos and Wayne Oliver, Forbes via White Coat]
  • Criminalizing bad parenting: more scrutiny of “Caylee’s Law” proposals [Steve Chapman, L.A. Times and Boston Globe editorials, New Scientist]
  • Deal with ADA complainant averts closure of popular Popponesset Marketplace in Mashpee, Mass. [Cape Cod News]
  • Because it’s not as if NYC needs electricity or anything: Bloomberg gives $50 million to Sierra Club campaign to stop coal burning by utilities [WaPo] “Environmental justice” arguments deployed against pipeline that would bring Alberta tar sands oil to U.S. [John Kendrick, WLF]
  • Unimpaired have permanent right to sue: Fla. high court throws out asbestos-reform law [PBP]
  • Red tape demanded by quality-of-life progressivism suffices to strangle poorer urban economies [Walter Russell Mead]

February 15 roundup

  • Artist Jeff Koons drops his lawsuit against maker of resin balloon dogs [Legal Blog Watch, BoingBoing, earlier]
  • The car pile-up happened fast, the come-ons from lawyers and chiropractors were almost as speedy [Adler/Volokh]
  • Andrew Thomas update: former Maricopa County Attorney intends to sue former bar president and ethics investigators [ABA Journal, Coyote]
  • Litigation finance: “Poker Magnate, London Firm Bankroll Chevron Plaintiffs” [Dan Fisher, Forbes] Case for champerty pleaded before ethics commission [Podgers, ABA Journal] The experience in Australia [Karlsgodt]
  • Judge: Kansas City stadium mascot hot dog toss suit can go to trial [OnPoint News, earlier]
  • How National Enquirer matched wits with John Edwards to expose scandal [David Perel, HuffPo] More: Justice Department building a case? [AW]
  • “The Whooping Cough’s Unnecessary Return” [Paul Howard/Jim Copland, City Journal] Theodore Dalrymple reviews new Paul Offit vaccine book [same]
  • Many trial lawyers yank funding from Ralph Nader operations in pique over his role in depriving Al Gore of White House victory [ten years ago on Overlawyered]