In our experience, many attorneys are not. It’s more important than ever to safeguard personal finances and ensure that one’s investment portfolio is aligned with both long-term investment goals and short-term needs. Surprisingly, despite protecting their clients’ best interests, lawyers are often guilty of falling short when it comes to their own – albeit unintentionally.
Litigating personal injury matters on contingency basis can be expensive in the short-term, but financially rewarding over time. The challenge in growing a contingent litigation practice is the large expenses which need to be paid upfront to cover marketing costs as well as disbursements. Add to this the protracted cashflow cycle due to the courts and Road Accident Fund and the reality is that you could have significant funds locked up in matters for months and even years…
A lawyer’s journey to a sustainable practice is arduous. Not every firms makes it, and much time and effort are required to grow to the next level. Whether it’s expanding into new offices, hiring additional staff, or funding new legal cases there will be a required upfront investment of time and money before seeing any returns.
It is a misnomer to term any business a simple one, but the business of being a law firm can often be far more arduous than those of other industries. Phil Knight, the founder of Nike, famously said: “Business is like a war without bullets”. However, the business of law is even more taxing because the industry has an underfunded war chest.
The disclaimer that all lawyers give their clients upfront in litigation is that litigation is lengthily, expensive, and without guarantee.
The billable hour has been the ubiquitous billing model for litigation services in South Africa since anyone can remember.
This article follows our article on the game theory of litigation and its “signaling events”.
Examining litigation and game theory is not a new concept. In South Africa, Taryn Neuhaus has written a fascinating paper titled “Game Theoretic Modeling of Litigation in Engineering Projects” (2015). This article presents some of her premises and conclusions, as well as those of the authorities and academics papers she has referenced.
Litigation is expensive and comes with enormous risk. With litigation funding available in South Africa, the legal landscape has changed for those who would not normally have access to our courts. Simon Kuper and Gary Sweiden are in the CliffCentral studio with Garry Hertzberg to explain the concept.
Nick Denton, Gawker Media’s founder and CEO, announced that the company has reached a settlement with Hulk Hogan as part of an insolvency arrangement to settle Hogan’s jury award against the company.
The worldwide rise of litigation funding began after the Global Financial Crises of 2008.
Online media company Gawker Media filed for Chapter 11 bankruptcy protection in June 2016. The company is now in the process of auctioning off its assets to the highest bidder.
WebGap’s Clayton Timcke sat down with his newest client Taurus Capital and its founders Simon Kuper and Gary Sweidan to ask a few questions about Taurus Capital, its services, and litigation funding in South Africa.