This week I continue my written interview with Rebecca Bereb Court Financing Consulting Avenue 33 LLC in connection with his legal experience որոշ decision to establish his own new firm. Please see below Rebecca’s answers to my second or third questions regarding her view of the rapidly evolving field of litigation financing, especially the stress of legal budgets presented by the COVID-19 epidemic.
As usual, I added a few brief comments to Rebecca’s answers below, but otherwise presented her answers when she provided them.
GC.2) Where do you see the litigation financing industry going in the next few years?
RB: This largely unregulated industry is growing so fast. The market for trials six months ago is different today. First, in response to the epidemic in particular, companies are increasingly interested in legalizing the financing of litigation as assets and using smart accounting. Second, as more investors recognize the potential value of litigation as a non-market-related asset, the financing class is expanding from traditional, single-mandate third-party financial stores to larger, multi-layered specialty funds, such as family offices. Finally, more and more law firms are opening up the possibility of using financing as a way to grow their client base without compromising their own edge.
But with growth comes challenges. I expect that judges will eventually demand more transparency from funders in terms of transaction structure, pricing, and advocacy for stricter guidelines for resolving conflicts, ethics, and privacy issues. Back in August 2020, the American Bar Association released the controversial Third Party Trial Financing Practice, offering guidelines for advocates to follow when dealing with outsourcing. this type of proposed regulation տեսակի subsequent discussions will continue. While regional financiers outside the United States, including the Association of Trustees of the Trials of England and Wales, have already developed, the largest group of third-party financiers in the world, the International Legal Finance Association, has just started publicly on September 8, 2020.
Despite the lack of unified influence in the industry at the moment մանը revealing the public in the industry, at 33 Avenue we անում will continue to closely monitor the market և players so that we can advise our customers with well-informed, up-to-date information. We are also looking to expand our service offerings so we know which additional providers can be useful and cost-effective in complementing our current efforts. And, as in any emerging industry, using an industry expert as a consultant to advise on specific concerns at the moment can only help reduce uncertainty, create value for all stakeholders.
G.K. Rebecca, in my opinion, presents a convincing case for having an expert opinion on the financing of the court case. It is appropriate to describe the industry (at least in the US) as an “emerging industry”, հաստատ there is definitely a place in the market for someone with an inside perspective to consult on future deals. As anyone who has worked with trial financiers knows, once a musician cuts off a lawyer’s ear to the person who wants to pay his or her bills, the hard work of getting a business deal begins. In these discussions, it seems clear that someone with experience in financing you would be an advantage, or at least preferable to negotiating an unknown contract. Not only is the potential for mistakes minimized, but having someone like Rebecca on the team sends a clear signal to the parties that your side is taking the matter very seriously.
GC.3) Do you envisage more funding opportunities due to the inflow of capital into the financing of the COVID-19 lawsuit?
RB: Yes. The fact is that we are already seeing an increase in available capital, as well as an increase in the demand of the plaintiffs for funding. I expect this trend to continue. It is logical that many investors seek opportunities to invest in assets that are hedged against volatile market changes since the outbreak of COVID-19. It is inevitable that when the global economy slows down, disputes will arise, leading to the spread of litigation and bankruptcy. I also expect that interest in litigation financing will increase among law firms that have not used funding in the past, as it is a very useful tool for stabilizing a legitimate business to ensure payment security. Avenue 33 is well positioned to provide expertise to all new entrants in the market, saving them time and money.
G.K. There is not much to add here, as I agree with Rebecca’s points concerning COVID, both in the interest of investors in litigation financing and in the demand for funds by the litigation / legal office. In fact, there has been talk of a significant shift in funding for patent litigation over the past few months, which I am sure is reflected in other areas. At the same time, with even more capital flowing into financiers ‘coffers, I do not expect a significant weakening of financiers’ standards when it comes to making investment decisions, especially in a familiar area (by financier’s standards) such as patent litigation.
I thank Rebecca for the insight և cooperation, I wish her success in her new և necessary consultation. It has always been a privilege to hear from someone who is at the forefront of the IP’s modern ecosystem, I thank Rebecca for agreeing to this interview. I’m always open to such interviews with other IP-minded leaders, so feel free to contact me if you have a compelling prospect to offer.
Please feel free to comment or send me questions via email@example.com or via Twitter. @gkroub:, Topic suggestions or thoughts on any topic are welcome.
Gaston Crowb lives in Brooklyn and is its founding partner Kroub, Silbersher & Kolmykov PLLC:մտ Intellectual Property Boutique և Markman Advisors LLC:, leading investment community patent consulting. Gaston’s practice focuses on intellectual property litigation and related counseling, with a strong focus on patent issues. You can reach him on time firstname.lastname@example.org: or follow him on Twitter: @gkroub:,