What makes a case suitable for financing?
Ми зацікавлені в участі у великих господарських та цивільних справах з чималими юридичними перевагами та значним відношенням інвестицій до реалістичної вартості урегулювання. Нам цікаві справи, де сума спору складає від 1.000.000 євро і більше, але ми можемо розглянути і менші суми. Фінансування не є регресним, тобто ми отримуємо віддачу від інвестованого капіталу лише в разі успішного вирішення справи. Щоб відповідати нашим основним критеріям, кожне питання, яке ми розглядаємо, проходить сувору перевірку для визначення обґрунтованості суттєвих претензій і збитків, а також ефективності інвестицій. Щоб дізнатися більше завантажте "UAB VIZA GROUP's Practical Guide to Funding Litigation"
Below, we summarize the key steps and factors we consider in the review process that help us determine our key criteria.
Initial Assessment
Each case undergoes an initial assessment during which we ask several questions to determine whether the case meets our core investment criteria for funding, including jurisdiction, stage of claim development, and size of investment:
Is the case a commercial (financially attractive) dispute?
Is the case being heard in national courts of common law jurisdiction or in an internationally recognized arbitration court?
Has legal counsel been retained, and has counsel conducted an analysis of the factual background and legal issues of the case?
Regarding patent issues, are claims based on multiple patents asserted?
Regarding arbitration (local court) between investor and state, are the investments significant?
Does the case require significant investment on our part, and within what timeframe?
Are the actual compensatory damages sufficient for the plaintiff to achieve a satisfactory outcome after payment of compensation and any attorney fees, premiums, or unforeseen costs?
Cases that meet our initial requirements then undergo comprehensive scrutiny, during which we conduct a thorough analysis of the case and evaluate the economics of funding the case.
A deeper analysis of the case
The underwriting process involves examining five key aspects of the case:
Merits
We only receive refunds after a successful case resolution, so we carefully evaluate cases to make sure they have serious merit. Our ability to accurately, efficiently and quickly evaluate the merits of a case requires assistance from the participants in the process.
Counsel
We only fund cases handled by experienced trial lawyers who have demonstrated a successful track record in the relevant field of law and a strategic approach to litigation.
Damages
Proposed damages must be realistic and supported by evidence—not necessarily expert opinion, but comparable or other convincing evidence of damages or valuation.
Defendant
The defendant and/or his business must be financially stable.
Enforceability
We must be sure that, if successful, the court's decision will be enforced. We need to make sure that the losing party is creditworthy, has the funds to pay, or has sufficient assets located in a favorable enforcement jurisdiction.
Economic Analysis
In addition to conducting substantive case review, we will perform an economic analysis of the case. The economic analysis consists of several interrelated components: budget assessment, lawyer risk share, damage assessment, and the relationship between the budget and the estimated value of the case.
Case Budget
When considering a case budget, we require a realistic budget for the case in court. Since a case brought to resolution and payment is the only way to get paid, our investment approach is to ensure that the case is sufficiently funded to see it through. Investment commitments based on this full budget are taken into account when considering the economic feasibility of a case. We cannot consider an investment if the economic indicators do not match.
Lawyer Risk Share:
When preparing a case for the funding process, an attorney should at least be prepared to receive a significant discount on an hourly fee or a partial contingency fee. We also require lawyers to work according to a combined scheme: partial payment and a fee for success.
Investment-to-Damage Ratio
We believe that in order for a third-party investment in a case to be successful, the case must be significant enough that, if successful, the plaintiff receives the majority of the damages and the investor receives a return that is at least several times its investment.
Obtaining a "YES"
The best candidates for funding meet the following criteria:
A commercial case with substantial grounds and well-substantiated damages, which significantly exceed the expected case budget.
Led by an exceptional legal practitioner willing to take some risk on the case.
Initial vetting has been conducted by the attorney before approaching us for funding.
Documentary and economic evidence substantiate the claims.
The realistically recoverable damages are sufficiently large for all parties involved in the process to be satisfied with their earnings.
We consider most commercial litigation and arbitration cases, but not all of them are suitable for our funding. Helping our potential partners understand our process and how we think about cases will expedite the case analysis process and increase the likelihood of finding solutions that benefit all parties involved.
Contact us
If you're unsure whether your case meets all our criteria, please don't hesitate to reach out to us, and we'll be happy to conduct an initial assessment of your case and explain to you why it may or may not meet our criteria.
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