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A funder of UK commercial litigation

Ben Hawkins offers the following description on LinkedIn.of his company: “Commercial Litigation Funding Limited [CLFL] specialises in the funding of large commercial legal cases. Via its Jersey based Protected Cell Company LitFUNDING PCC, we agree to fund the litigation costs and assume responsibility for adverse costs in exchange for a share of the damages.”

“Since our establishment in 2007, we have worked with some of the leading litigation firms in the UK, reviewing approximately 100 cases per year and have agreed to support approximately 5% of those. Although litigation funding is relatively new to the UK legal system, it is estimated that in 10 years, 30% of all [presumably commercial] litigation will be funded.”

“Typical cases that we consider require funding of £500k upwards – breach of contract, intellectual property disputes, Competition Act cases, shareholder disputes – indeed anything where the outcome is likely to produce damages of around £3m upwards.”

Note three observations from that description. The lender operates from and under the laws of an unusual jurisdiction, the Jersey Isles. Second, the lender looks for returns of roughly six to one or better. Third, its investments also protect the plaintiff from attorneys’ fees if the court finds against it and awards costs.