Frequently Asked Questions

1. How is Manolete able to buy litigation actions? I understood that there were strict Champerty and Maintenance laws against this?

Working with senior Queen’s Counsel, Manolete has designed specific funding products that safely fall outside the scope of the Champerty and Maintenance laws. We have been doing this successfully for over nine years. We can provide funding directly to the Office Holder where the action has to be in his/ her name but in all other cases we can purchase the litigation and transfer all risk to Manolete.

2. Will the Office Holder’s name continue to be associated with the litigation?

In cases where Manolete has purchased the claim or debt outright the Office Holder will have no connection whatsoever with the claim once he has sold it, in the same way that he would have no connection to an item of machinery or stock he had sold for the company in liquidation or administration.

Where the litigation needs to be pursued in the Office Holder’s name, the Office Holder will of course still be a party to the action. Under both transactions types, Manolete provides full indemnities to the Office Holder and ensures that he/she has no personal liability exposure whatsoever.

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3. How does Manolete legally structure its funding arrangements?

Assignment transactions are structured as simple Sale and Purchase Agreements – exactly as the Office Holder would use when selling a physical asset. No warranties or indemnities are asked of the IP. The IP can sell for a one-off payment or can take a smaller up front payment and retain a 50-90% share of the net proceeds (net only of our external legal and associated costs).

Funded transactions are governed by a Funding Agreement between Manolete and the Office Holder, with Manolete covering all ongoing legal and related costs (including the IP’s own costs) and providing a full indemnity for adverse costs. We tend not to use ATE due to its high cost.

4. What does the Office Holder or the Company need to pay for?

Absolutely nothing.

Where the litigation needs to be pursued in the Office Holder’s name, the Office Holder will of course still be a party to the action. On these Funded cases, Manolete pays the company an initial amount on signing of the agreement with you to at least cover your costs and then pays the company a share of proceeds (settlement or award) of the action. All invoices (legal, experts, cost insurance etc.) are wholly for our account.

5. How involved does the Office Holder need to be in the day to day running of the case?

Where Manolete has purchased the claim, other than a short initial hand-over period, there is no need for any involvement at all but any further work by you or your team will be paid for by Manolete. For Funded cases the Office Holder remains as Claimant and takes all key day-to-day decisions on the case.

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6. How does Manolete make a return on its investment?

Manolete pays an initial amount on signing of the agreement with the Office Holder, pays all the costs of prosecuting the action and makes its return by engineering a successful settlement of the case. After re-imbursement of its costs, Manolete pays an agreed percentage of that settlement back to the company and retains the balance. As Manolete invests in a wide range and large number of cases it takes a portfolio approach to its investments.

7. How does Manolete price its investments?

This really depends on the merits and features of the individual case. We offer a large degree of flexibility – we can pay more or less up front for a higher or lower percentage of the eventual outcome