In today’s pressing economic environment, it’s worth asking how GCs are dealing with the financial uncertainties of COVID-19? Fortunately, Burford Capital held a roundtable discussion on just this very topic.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
In today’s pressing economic environment, it’s worth asking how GCs are dealing with the financial uncertainties of COVID-19? Fortunately, Burford Capital held a roundtable discussion on just this very topic.
Burford Senior VPs asked industry leaders how they reassure clients in moving forward with affirmative litigation, and what factors impact those choices. What lessons should we take away from the last economic slide, and how has Litigation Finance impacted the industry?
Reed Oslan of Kirkland & Ellis explains that Litigation Finance is really just the contingency fee model extended. He expects, like most in the industry, that funders will see a huge upswing in requests for funding. They’ll also be able to have their pick of cases and clients to choose from. Oslan treats plaintiff-side cases just like any other company asset.
Maja Zerjal of Proskauer Rose, touts the benefits of using litigation funders to objectively assess the value of a claim as part of the underwriting process. For a financially strapped firm, getting a funder on board can mean the difference between pursuing a case or taking a pass. Using a methodical approach to vetting cases, then coming up with creative solutions to pursue litigation, drives value.
Burford also asked lawyers how they led clients to enter into a funding agreement with a third-party. Cindy Sobel of Bartlit Beck details how, as a trusted advisor, she helps clients understand that third-party funding is key to allowing cases to move forward, while alleviating the associated economic burdens. She goes on to say that clients deserve to be well-informed of all options.
Scott Gant of Boies Schiller Flexner sees a clear line between educating clients about funding, and advising them one way or another. He asserts that it may not be in the litigator’s purview to advise clients on third-party contracts.
Charlie Lightfoot of Jenner & Block stresses the importance of planning. Early strategy sessions on how judgments will be executed or collections made, is far better than trying to squeeze an award from an intransigent stone.
