A new litigation fund set up by an Irish property entrepreneur is promising to back cases with a lower value than most competitors are prepared to take on.
Trusted Litigation Capital (TLC) will come to market in September and fund cases worth as little as £200,000, its founder has told the Gazette.
Gearoid O Ceallaigh, who has a background in hotels and property, has already secured enough ‘seed investment’ to reach the £2m threshold for becoming a member of the Association of Litigation Funders, but he expects to raise ‘substantially’ more investment.
O Ceallaigh has recruited a team of 12 barristers, including six QCs, to sit on a panel to judge the merit of cases. Accepted cases will require an ‘exceptionally high’ prospect of success, he said, with a predictable recovery outlook.
‘We are prepared to structure it in a way where it is less risky than normal third-party funding. We only look at cases where they are commercial and where people take a pragmatic view on the outcome.’
TLC will actively target a larger volume of smaller value cases, in practice areas including banking, professional negligence, medical claims, property, Ministry of Defence claims and institutional abuse claims.
O Ceallaigh said the Jackson reforms had made third-party litigation more attractive to both solicitors and investors. He denied the influence of a third party would have an intrusive or negative effect on cases, although parties must be prepared to settle disputes.
‘If we have an appellant who will run a case for as long as possible and won’t be prepared to settle, then we won’t invest,’ he said. ‘[But] it is important to stress that we don’t run a case. Cases are run by solicitors.’
The move follows the recent launch of a new product by litigation funder Augusta which is also aimed at lower value cases, as revealed by the Gazette’s sister publication Litigation Funding this month.
Augusta’s new Trinity scheme provides both third-party funding and after-the-event insurance, with a minimum investment of £50,000. Full details of the scheme, which uses technology to offer a more streamlined application process, can be found in the June edition of Litigation Funding.