New Zealand has been far slower to adopt litigation funding than neighboring Australia, where the practice originated. However, the funding market is surging in kiwi-land, thanks in part to local funder LPF Group, which has bankrolled some sizable claims.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
New Zealand has been far slower to adopt litigation funding than neighboring Australia, where the practice originated. However, the funding market is surging in kiwi-land, thanks in part to local funder LPF Group, which has bankrolled some sizable claims.
As reported in The Spinoff, LPF – which stands for Level Playing Field – has financed some high-profile cases in New Zealand. The PricewaterhouseCoopers claim is a prime example. The claim alleged that investors in David Henderson’s Property Ventures Group were victimized by poor accounting standards from PwC, which audited the books of the now defunct-company. Terms of the claim settlement are undisclosed, but rumored to be around the $100MM mark. Having backed the claim, LPF obtained a substantial participation in the payout.
Other prominent claims include a High Court victory against the Ministry of Primary Industries. That claim alleged over $1Bn in losses from kiwi fruit growers, thanks to toxic pollen which was imported by the government. The successful outcome for LPF is currently under appeal. The funder also won a $36MM judgment against Mainzeal and its former directors, in a shareholder claim against the bankrupt property firm which was publicly listed.
Litigation funding in New Zealand is rightfully taking off, as angry shareholders and investors look at neighboring Australia and see the access to justice which the practice helps facilitate. New Zealanders are clearly demanding their own version of the David v. Goliath paradigm. And LPF is capitalizing on the trend. The funder – which focuses on insolvency, commercial and building & construction claims – currently has major suits in the works, against the likes of CBL Insurance Group and Intueri, among others.
It will be interesting to see how the funding market in New Zealand develops over time, and if the class action environment approaches anything like the current ecosystem in neighboring Australia.
