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Commercial Deals

Funders See a ‘Natural Fit’ with Bankruptcy Litigation

By John Freund |

With funding for patent litigation facing a barrage of disclosure requests in the US, and funding agreements in class action claims facing new challenges, funders are keen to keep an eye on sectors that will provide the best opportunities for increased investment. With economic difficulties continuing globally, one area that may prove particularly fertile ground for investment is bankruptcy litigation.

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Commercial Special Features

Member Spotlight: Felipe Hotta 

By John Freund |

Felipe Hotta, Partner at Pogust Goodhead, is a 29-year-old Brazilian lawyer who graduated from the University of São Paulo (USP). Hotta graduated a master's degree in environmental law from Queen Mary University of London and trained at the Negotiation Program at Harvard Law School. 

Specialized in indigenous law, environmental law, and human rights, Hotta dedicates his career to advocating on behalf of vulnerable communities and of those without full access to justice in Brazil, particularly in cases against large international corporations.  

Pogust Goodhead is a global law firm headquartered in London, England, dedicated to fighting for justice on behalf of those affected by potentially irresponsible actions from large corporations. Pogust Goodhead´s mission is to level the playing field between individuals, businesses and large corporations. 

In 2023, Pogust Goodhead and Gramercy signed a £450 million investment partnership, the largest litigation funding deal in legal history. 

Company Website: https://pogustgoodhead.com/ 

Year Founded: 2018 

Headquarters: Rio de Janeiro, London, Philadelphia, Amsterdam, Miami, Edinburgh, San Diego, New Jersey and Sydney. 

Area of Focus:  Environmental law, human rights, climate litigation, consumer law, indigenous law, collective disputes 

Member Quote: "In a context where access to justice is often a privilege of the powerful, litigation funding emerges as hope for those who have been victims of human rights or environmental rights violations in Brazil, particularly in the fight against large corporations." 

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Commercial Regulatory Issues

Rachel Rothwell: CJC Review’s Recommendations Expected to be ‘Considered, Comprehensive and Workable’

By Harry Moran |

An opinion piece in the latest edition of The Law Society Gazette magazine sees Rachel Rothwell explore the question of whether litigation funders should be worried about the upcoming Civil Justice Council (CJC) review of third-party funding in the UK. 

As Rothwell points out in her introduction, the CJC review is unlikely to see the prolonged timelines of similar reviews we have seen abroad, as the CJC has been tasked to deliver its final report by the summer of 2025. She also suggests that the CJC “will not be starting from scratch”, given that one of the working group’s members, Mrs Justice Cockerill, has a pre-existing involvement in an ongoing research project looking at this topic for the European Law Institute (ELI).

Regarding the issue of whether the CJC review will recommend statutory regulation of the litigation funding industry, Rothwell suggests that whilst there is a member of the Financial Conduct Authority on the review’s working group, “the FCA has so far shown no appetite for that onerous task.” Furthermore, Rothwell reveals that the current draft version of the report from ELI “concludes that statutory regulation would not be the right approach.”

Rothwell also explores other issues that the CJC review may consider, from a greater level of self-regulation through industry associations or the potential of imposing a cap on funder’s returns. However, Rothwell concludes that as we currently look at the review “it is particularly encouraging that it is already drawing together a broader consultation group” and that we can expect its recommendations “to be considered, comprehensive and workable.”

Commercial Deals

Spanish Arbitration Event Highlights Value of Third-Party Funding

By Harry Moran |

An article in Iberian Lawyer provides coverage of the OPEN FEST of Arbitration event in Madrid, which included a panel discussion on investment arbitration and the use of third-party funding in these disputes. The panel was moderated by Claudia Frutos-Peterson from Curtis, Mallet-Prevost, Colt & Mosle, and featured insights from Cristina Soler, CEO of Ramco; José Julio Figueroa, General Counsel of Acciona; Carlos Gutiérrez García, Litigation Director at Siemens Gamesa; and Ignacio Del Cuvillo, Director of Legal Corporate Services & Finances at Repsol.

The panel discussion highlighted the gradually increased use of third-party funding in this area, citing the Global Arbitration Review (GAR) 100 annual survey which found the number of funded arbitrations had risen from 198 in 2022, to 208 in 2023. The lengthy timelines and high costs involved in these disputes was raised as a key incentive for the use of third-party funding, with Figueroa explaining that “conflicts between foreign investors and host states involve significant strategic, geopolitical, and economic interests, with prolonged and uncertain execution periods.”

Speaking from the funder’s perspective, Ramco’s Cristina Soler discussed the value that a funder can bring beyond its financial resources, such as the firm’s experience in navigating these disputes and building a viable strategy for both the arbitration and any award enforcement or collection issues that may arise.