We have worked with about 300 different IP firms and their lawyers. But there are still a few misconceptions about how we operate.
I heard I will have to work with a new set of lawyers chosen by Manolete.
Not true. In every case the IP chooses the legal team to work on the case. There is no ‘approved panel’ and never has been.
Manolete has its own in-house team of lawyers
Our In-house lawyers review and monitor cases. All legal work is carried out by external law firms and counsel.
I thought rules on Champerty outlawed this kind of financing claims
The Insolvency Act 1986 has a specific override to the normal rules of Champerty and Maintenance.
You settle too early
The model aligns us fully with the Insolvent Estate. If there is more value at a proportionate cost we will always pursue a case further.
Manolete cherry pick claims
Not true. Cases range from £20k to over £70m. We are the largest single case investor in the world.
Assigning a claim means the IP has no further involvement
IPs are kept fully apprised and will often be intimately involved as the case progresses. Even on assigned cases, the IP is always invited to attend mediations and always consulted on whether to accept an offer or not.
You don’t use ATE so the IP must be financially exposed
Yes, we don’t use ATE – we simply self-insure the adverse cost risk from our own balance sheet. We currently have over £25m of investment funds available.
Your share is too big/you are too expensive
We give a minimum of 50% of net proceeds to the Estate after costs. This rises on a ratchet basis up to 90%. If the claim fails, we bear 100% of our own and any adverse costs.