It’s been a turbulent year for third-party funders, from court battles shining a spotlight on risky investments to new entrants and exits. Legal Business scopes the changing landscape for litigation’s bankrollers.
In early autumn, high-flying disputes lawyer Harvey Rands was taking a vacation in upstate New York. While many spend breaks catching up on books and perfecting golf swings, Rands, one of Memery Crystal’s highest billers, held in his possession an embargoed draft of the Excalibur costs judgment, a Commercial Court ruling on one of the most controversial pieces of litigation in recent years. Crucially the ruling, made public on 23 October, found third-party funders liable for indemnity costs in what became a precedent for an industry historically dogged with a controversial reputation.