It isn’t so long since the litigation funding market felt the shockwaves reverberating from Mr Justice Christopher Clarke’s judgment in the Excalibur v (1)Texas Keystone; (2) Gulf Keystone ruling. The case was thrown out and two of the three funders behind Excalibur’s case were exposed as being insolvent.
All this raised some serious questions about the state of the domestic funding sector. The Association of Litigation Funders sought to crack the whip by introducing a code aimed at clamping down on risky players.
The new image has been put to the test this week after allegations that funder Argentum is a Ponzi scheme in disguise. Its financial backer, Centaur Capital, is under investigation by the Hong Kong authorities because of claims that it is a £90m Ponzi scheme run by Briton Brendan Terrill.
This is the fund that had backed the group litigation order against Royal Bank of Scotland, which is currently being pursued by Stewarts Law.
Argentum has left the ALF, leaving the association to fight another day.
Also on TheLawyer.com
- Slaughters bumps up NQ salary by more than 3 per cent to £65,000
- Freshfields Bruckhaus Deringer has relocated its global international arbitration head to Singapore after a host of exits from the team
- Supreme Court president Lord Neuberger’s focus on collegiate working is resulting in fewer dissenting opinions on the bench
Litigation – Shoosmiths: Litigation costs: the hidden truth
Employment – Veale Wasbrough Vizards: Where could a non-delegable duty of care occur? Woodland v Essex County Council
Funds – Mourant Ozannes: Crociani v Crociani: ‘exclusive jurisdiction’ and ‘forum for administration’ redefined
IP – NCTM: Trademarks: the Italian Supreme Court rules on the ‘gold battle’ between food companies Barilla and Saiwa
Construction – Gateley: Adjudication notices — it’s not right but it’s okay