£2.4M Wrongful Trading Claim
IP Firm: Specialist IP Firm
Type of Investment: Funding the Office Holder
Start Date: March 2014
Completion Date: May 2015 (15 months)
This case concerned a large European Manufacturer with a UK Sales Company run by ‘professional’ Jersey Directors. This case featured the use of our “LCIP” model (“Large Case Integrated Product”) – where we agreed the solicitors would be paid a fixed fee of £360k + VAT no matter what the outcome. So Manolete agreed to pay £15k pm over 24 months, guaranteed. We also agreed to pay crucial additional IP investigation work of £43k. Counsel from Wilberforce Chambers was paid £90k, as incurred.
14 months later the case settled at mediation for £2.4m in cash which was received in full within four weeks.
The IP’s solicitors had received 14 months fixed fees at £15k per month and were then paid the balancing 10 months “not worked” in final bullet payment.
All IP and Lawyer WIP (prior and post our involvement) was paid in full.
Critically – Creditor returns were increased by 11x: from 4p pre-litigation, to over 44p postlitigation.
“I am now a litigation funding evangelist”.– QUOTE FROM THE SOLICITORS