There has been a lot of discussion lately around the use of portfolio litigation funding, and the wider partnership between funders and clients to provide capital for a range of litigation activities. A new example of this approach has appeared in Europe, where a startup Italian funder has signed an agreement with a local association to provide funding for litigation on behalf of its partner institutions.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
There has been a lot of discussion lately around the use of portfolio litigation funding, and the wider partnership between funders and clients to provide capital for a range of litigation activities. A new example of this approach has appeared in Europe, where a startup Italian funder has signed an agreement with a local association to provide funding for litigation on behalf of its partner institutions.
The announcement shared on Legalcommunity.it provides the details on LexCapital’s new agreement with Asmel (Associazione per la Sussidiarietà e la Modernizzazione degli Enti Locali), an association focused on the modernization of local authorities in Italy. The agreement will allow Asmel’s 4,100 partnered institutions to cut costs by giving LexCapital the litigation rights for active disputes, with any financial awards being shared between the local municipality and the funder.
Speaking to the benefits of this new partnership, LexCapital’s chief operating officer, Giuseppe Farchione, stated that by taking on the litigation costs, this agreement will allow the local authorities to focus their own resources more efficiently, and also benefit from LexCapital’s technical expertise in litigation. Francesco Pinto, general secretary of Asmel, said that this agreement represents an innovative formula and will provide financial assistance to its partners, whilst also hopefully increasing their rate of success in these lawsuits.
