Efficient, in-depth diligence geared specifically towards assessing the merits of a claim, probability of financial recovery, and expected duration and appellate risks.
Litigation finance can be a powerful tool: claimholders can use it to reduce risk, secure working capital, or bring claims without diverting business resources; investors to diversify their investments into uncorrelated areas; law firms to monetize expected recoveries or to help take on new opportunities; and litigation finance companies can offer unique solutions to businesses and consumers.
To successfully leverage the opportunities offered by litigation finance requires counsel skilled in this nascent field. Our Team serves the needs of litigation finance companies (both commercial- and consumer-focused), claimholders, and investors. We draw on significant and varied experience in the litigation finance space, with counsel who have been involved in dozens of litigation finance transactions involving businesses, consumers, law firms, and large insurers.
Efficient, in-depth diligence geared specifically towards assessing the merits of a claim, probability of financial recovery, and expected duration and appellate risks.
Determining claim value through an assessment of damages theories, expected duration, probability of success and expense of litigation.
Providing guidance on relevant laws, regulations, and ethics rules, and structuring transactions to minimize risk.
Tailored advice for clients considering investments in litigation finance on matter-specific considerations and litigation finance risks more broadly.
Documentation and negotiation of commercial litigation finance transactions taking into account security agreements, revenue recognition, requirements for ongoing funding, tax treatment, and the respective roles and rights of the parties.
Transactions for the sales and purchases of medical lien receivables and pre-settlement funding loans require careful negotiation of cash controls, security agreements, servicing arrangements, and relevant regulations, to balance investor security and operational flexibility. Scale’s Fintech and Financial Service Group can also assist tech-forward funders.
Navigating complex transactions with insurers that can help safeguard significant judgments against appellate and counterparty risk.
Diligence supporting judgment preservation insurance brokers, primary and contingent insurers, including identification of appellate issues, susceptibility to disturbance under applicable standards of review, potential outcomes on remand, and likely minimum recovery.
Negotiation of policy terms, including minimization of exclusions.
Diligence, contracting, and strategy designed to strike a balance between providing investors with security and oversight and supporting the law firm borrowers’ operational autonomy, ensuring that the terms align with both parties’ interests, the firm’s goals, and its growth strategy.
Creating legal structures to provide maximum alignment between investors and originators that supports a clear and predictable relationship between the parties. Structuring takes into account evaluation or risk, aggregation of claims and cases, and return waterfalls suited to the portfolio.
Ensuring that investors understand the unique tax implications of litigation finance investment and take steps to achieve favorable tax treatment.
Scale LLP’s nontraditional structure and the breadth of experience of our attorneys aligns with litigation funding, allowing for a business-minded and risk oriented approach and flexible fee structures.
Scale Your Boutique Practice
I knew we could "do well while doing good" by providing quality counsel and balancing it with our service efforts, but I reached a point where I couldn't grow the firm any further on my own. My dream clients were out of reach with a team of our size, and I didn't know if my family could handle the additional years of effort it would take to grow organically.
Celebrating Women's Creativity at Scale
As we celebrate the collective achievements of women on this International Women's Day, we asked several of the many talented women at Scale to share their insights on fostering creativity as legal practitioners and advising clients that are on the cutting-edge of innovation.