Your questions answered
Absolutely not. It may be that a corporate has exhausted its annual legal budget, wants its working capital deployed elsewhere or just appreciates certainty over its expenses. The costs of litigation are notorious for being unpredictable, lasting for several months or years and potentially coming with the risk of an adverse costs award. The opportunity to mitigate these financial concerns is very attractive, as is the accounting treatment.
Frequently they see us as part of their risk management strategy. Even the most solid litigation or arbitration claim is not guaranteed to succeed and so there is a strong argument to shift the risk off balance sheet, to protect stakeholders against an adverse outcome.
Private Equity firms often view litigation as an asset class and require the business to manage it in the expectation that it will yield returns like any other asset within the organisation. Litigation funding and bespoke insurance can be a fundamental part of that toolkit.
Harbour backs commercial disputes and does not mandate a minimum claim value, although we do not fund personal injury or divorce claims.
No. The claimant selects their legal team, manages the litigation and has sole discretion over settlement decisions. If an offer is made, it is the claimant’s legal team that provides their client with an opinion about whether the offer is reasonable and whether to settle.
Many clients appreciate that Harbour is essentially lending them the expertise of its team of full time professional litigators, plus the QCs on its Investment Committee, as we perform our own due diligence on the case prior to funding. This review can occasionally lead to the identification of new issues or invaluable new perspectives.
Yes. Active disputes and uncollected claims that have been awarded can be used as security against debt financing.
Harbour can cover adverse costs, payments to the court by way of security for costs and pay fees associated with arbitration. We can also access a strategy to limit the damages to which clients would be exposed, as we know that the ability to remove tail risks can be crucial to our clients’ decision to litigate.
To date we have raised over US$1billion of committed capital across four funds. When Harbour invests in a claim, the entire budget is ring fenced and protected from day one. Knowing the funds are exclusively available for their use and not shared with other cases gives the client peace of mind.
Since 2002 our team has funded over 110 cases in 13 jurisdictions and under 4 sets of arbitral rules. We have been instrumental in shaping the third party funding landscape and possess an in-depth understanding of litigation and arbitration. Harbour continues to innovate, developing bespoke solutions to resolve the various litigation concerns that our clients face.
We have significant experience in international arbitration, class actions, commercial, competition, construction, fraud, insolvency, intellectual property, banking and finance law.