Proving the effectiveness of the Manolete model even on small cases that go all the way to trial, we are pleased to report that a £50k case we funded for a North East based Office Holder has been won in the Central London County Court.
The case covered six Heads of Claim covering Misfeasance and Transactions at Undervalue. Interest was awarded to the Office Holder, dating back to September 2011. Almost all of our costs were recovered in the judgment. As Manolete assumes all the adverse cost risk (therefore no ATE cost to the case) and we do not use CFAs, the entire gross recovery was available for distribution, thus resulting in good recovery to the Insolvent Estate. If CFA and ATE had been used to finance the case, then the success fee and ATE premium would have had to be taken from the recovery, leaving nil recovery to the Insolvent Estate.
Phillip Gale of Enterprise Chambers represented the Office Holder in Court. Kidd Rapinet were the acting solicitors.
Manolete CEO, Steven Cooklin, commented: “It is small cases like this that highlight the intrinsic value of the Manolete model to the Insolvency and Creditor Communities. If the Office Holder had used a CFA and ATE structure to finance this small case to trial then there would simply have been no recovery to the Estate whatsoever – so the Office Holder would have not been able to cover her costs, let alone a distribution to creditors. Using the Manolete model, the entire gross recovery is available for distribution to the Estate and the Funder. The legal team has been paid in full and, due to our blanket indemnity in our Funding Agreement, there was no risk whatsoever to the Office Holder nor the Estate from the outset. The same principles apply on our larger cases and consequently drive fantastic results for creditors.