Litigation funders set to pay indemnity costs

Litigation funders set to pay indemnity costs

The recent case of  Excalibur Ventures LLC v Texas Keystone Inc and others [2014] EWHC 3436 (Comm), [2014] All ER (D) 300 (Oct) held that third party litigation funders were liable for indemnity costs awarded against the party they funded.

Our Dispute Resolution colleagues have prepared and blogged some analysis which can be accessed by clicking here.

This case will be of interest to those involved in insolvency litigation who use third party litigation funding. Such funding may become more prevalent if the current exemption for the recovery of success fees and ATE insurance premiums in insolvency proceedings comes to an end in April 2015 as presently scheduled (the removal of the insolvency exemption from the Jackson Reforms). The decision in the case might also be relevant as to whether it impacts on creditors who fund insolvency litigation in circumstances where they do not seek to make a profit. 

Find out more about how LexisPSL can help you and click here for a free trial of LexisPSL Restructuring and Insolvency.

Stephen Leslie, solicitor in the Lexis®PSL Restructuring & Insolvency team.

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About the author:

Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.

Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.