2014 LITIGATION FINANCE NEWSWhat Do Lawyers Think About Litigation Finance.Jan 2014 -- While more common in the UK and Australia, the majority of financial executives think law firms should explain third party funding at the outset of a case. http://blogs.wsj.com/law/2014/01/15/what-do-lawyers-and-in-house-counsel-really-think-about-litigation-finance/

LitCap Announces Version 3.2 of its Attorney Financing Marketplace.Houston, TX (PRWEB) February 06, 2014 - LitCap, an online marketplace that connects attorneys with qualified investors/lenders for case cost financing, has launched Version 3.2 of its platform. While a relatively new company (launched on September 1, 2013), LitCap has facilitated over $40 million in case cost financing for attorneys. Loans funded

2014 Litigation Forecast. January 2014 -- Crowell & Moring has published Litigation Forecast 2014: What Corporate Counsel Need to Know in the Coming Year. The report explores critical litigation issues and forward-looking perspectives on trends affecting a wide range of companies and industries, and identifies cases to watch in 15 areas of law, including: antitrust, class actions, environmental, government contracts, patents, tax, trade secrets, white collar, insurance/reinsurance, energy, and financial services. http://www.crowell.com/NewsEvents/Litigation-Forecast/Litigation-Forecast-2014#.UuKTFRApDX4

p g ythrough the LitCap marketplace are used for case related expenses only (not legal fees or other expenses) and cover virtually all aspects of civil litigation, including business litigation, employment disputes, wrongful death claims, and even large case related expenses such as intellectual property or class action litigation. About the LitCap Marketplace

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Legal Capital and Legal Funding Tips.January 2014 - 5 Legal Funding Tips. What are legal loans?A legal loan is more like a cash advance than a traditional loan.- See more at: http://lawstreetcapital.com/lawsuit-funding-companies/legal-funding-tips/#sthash sTyeFRDT dpuf

Lawsuit Funding Lures.Feb 2014 – Forbes - Contingent fee lawyers often need cash. So do their clients.http://www.forbes.com/fdc/welcome_mjx.shtml

Morgan Stanley Executive to Join Litigation Finance Firm.tips/#sthash.sTyeFRDT.dpufttp://lawstreetcapital.com/lawsuit-funding-companies/legal-funding-tips/

AAJ's All About Alternative Litigation Financing.January 2013, Volume 49, No. 1. All about alternative litigation financing. J. Burton LeBlanc and S. Ann Saucer. Alternative litigation financing provides an avenue for consumers and commercial plaintiffs to undertake cases that would otherwise be too costly Properly regulated these

o ga Sta ey ecut e to Jo t gat o a ceMarch 31, 2014 by William Alden. A senior executive at Morgan Stanley is preparing to join the field of litigation finance, a young industry in which investment firms stake millions on the outcome of lawsuits.

Burford 2013 Annual Report.Mar 28, 2014 - Burford Capital Annual Report 2013. www.burfordcapital.com/wp-plaintiffs to undertake cases that would otherwise be too costly. Properly regulated, these

financing agreements level the field against well-funded defendants. Alternative litigation financing (ALF), also known as third-party litigation financing, is the practice of making cash advances, most typically to a party in a lawsuit, to be repaid from the proceeds from the litigation. Broadly stated, ALFs are funding mechanisms that differ from other funding, such as paying litigation expenses from the -client’s or counsel’s lines of credit or operating budgets. The hallmark of ALF providers, as distinguished from settlement factoring companies, is that the financing contracts are executed before there is a settlement or judgment corpus making ALF a way to spread the risk of

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executed before there is a settlement or judgment corpus, making ALF a way to spread the risk of uncertain litigation outcomes. The issue is not without controversy, and it has received increased attention from lawmakers, legal commentators, and ethics committees.http://www.justice.org/cps/rde/justice/hs.xsl/19869.htm

April 8, 2014

2013 ALTERNATIVE LENDING LITIGATION FINANCE NEWSSummary Recap:

According to the Federal Judicial Center pursuing a civil action in federal court now costs plaintiffs with suits alleging product defects or malpractice out-of-pocket expenditures in the low six figureslow six figures.

Over the past thirty years, lawyers case lending has evolved from self lending to peer interfirmto third parties.

By decoupling a firm's access to capital from its reservoir of expertise; with third party ligationBy decoupling a firm s access to capital from its reservoir of expertise; with third party ligation finance change is here. Potential outcomes from alternative lending on a case by case basis:

“I never have to worry about referring large cases.” “I have the financial power to stay in charge of all my cases and receive the entire fee.”‘Lawyer lending might help resurrect the "vanishing trial“”’

Injecting more capital resources into litigation will facilitate case preparation, higher caliber experts, construct more elaborate demonstratives, and level the playing field between plaintiffs and better financed foes.

If lawyer lending encourages attorneys to accept more complex cases, the legal access problem that plagues certain segments might become ameliorated. Small changes to resources can spark profound changes in civil litigation not just how cases are litigated but also quality and quantity.

Source: Professor at Stanford Law School Nora Freeman Engstrom. Re-Re-Financing Civil Litigation How Lawyer Lending Will Remake the American Litigation Landscape, Again. http://www.uclalawreview.org/pdf/discourse/61-8.pdf

ALTERNATIVE LITIGATION FINANCE

The United States judicial system is in the midst of great and fundamental change with regard to the funding of litigation . Hi t i ll ti fi d liti ti t f th i lit lHistorically, parties financed litigation out of their own literal or figurative pockets or, perhaps, with the assistance of some sort of contingent fee representation.[1] The demand for this alternative litigation finance (“ALF”)[4] clearly exists,[5] and the supply of g ( )[ ] y ,[ ] pp yfunding has developed….

Litigation funding alters the relative power of players in the justice g g p p y jsystem; it provides access to the playing field and also ensures that the teams show up at the field with the same equipment.[10]

Source: Alternative Litigation Finance published January 2013 by The Wake Forest Law Review by Grace M. Giessel.

April 8, 2014

SILENT PARTNER IN YOUR FIRM’S SUCCESS

At LitCap we believe that case cost financing for attorneys should functionlike your contingent fee cases in that the expenses are only paid when thecase is resolved successfullycase is resolved successfully.

•No interest or payments are required until the case is resolved successfully.•No interaction between lenders and attorneys until the case is resolved successfully.

Loans funded through the LitCap marketplace are used for case related expenses (not legal fees or other expenses) andi ll ll f i il li i i i l di b i li i i l di f l d h l i dcover virtually all aspects of civil litigation, including business litigation, employment disputes, wrongful death claims, and

even large case related expenses such as intellectual property or class action litigation.

LitCap’s mission is to change the way lawyers finance their case related expenses as an alternative to banks.Contact Aubree Feldmann today at (713) 946-6464 or via email at aubree@litcap.net

Q&A WITH THE LITCAP FOUNDERS HTTP //LITCAPITAL NET/FAQS/FOUNDERSHTTP://LITCAPITAL.NET/FAQS/FOUNDERSQuestion #1: What type of cases get funded?

Answer: “Loans funded through the LitCap Marketplace are used for case relatedexpenses only (not legal fees or other expenses) and cover virtually all aspects of civilexpenses only (not legal fees or other expenses) and cover virtually all aspects of civillitigation, including business litigation, employment disputes, wrongful death claims,and even large case related expenses such as intellectual property or class action

litigation ”litigation.

Question #2: Why do attorneys need the LitCap Marketplace?Question #2: Why do attorneys need the LitCap Marketplace?Answer: “From the beginning people would ask us, ‘Why would big name firms useLitCap?’ Ironically, the fact was the bigger and better the law firm, the more theyneeded our product to efficiently manage and maintain a large growing and profitableneeded our product to efficiently manage and maintain a large, growing and profitablepractice. The more successful the firm, the more money they need to finance theircase-related expenses. A firm’s success can often times outpace its cash flow.Because of this we have seen the greatest response for our product from some of theBecause of this, we have seen the greatest response for our product from some of thelargest firms in the nation.”

April 8, 2014

Q&A WITH THE LITCAP FOUNDERS HTTP //LITCAPITAL NET/FAQS/FOUNDERSHTTP://LITCAPITAL.NET/FAQS/FOUNDERSQuestion #3: Why did you start the LitCap Marketplace?

Answer: “The majority of the attorneys that we talk to understand that funding their clients’ casecosts is the least effective use of their funds, but until now lawyers have not had a product that isy pas flexible and well suited for their practice as LitCap. Lawyers can now use their revenue muchmore efficiently and effectively without worrying if they can afford to finance the next case thatcomes through the door. When Lawyers take the time to learn about what we [LitCap] are doing, alight bulb goes off and they instantly get it. It was designed for trial lawyers around the way theypractice law, so having contingent financing that mirrors a lawyer’s contingent contract with theirclient is very appealing. Having the option to have multiple investors bid against each other forthe lawyer’s business is equally appealing We have been told numerous times ‘I just can’tthe lawyer s business is equally appealing. We have been told numerous times, I just can tbelieve no one has thought of this before.”

Question #4: What makes the LitCap Marketplace different and unique from alternativelitigation financing lenders?Answer:“Many people at first did not realize that with LitCap you can fund cases on an individualbasis and not have to tie up other parts of your docket. Attorneys can now fund just one case orll f th i b b i ll thi ll ll f th l t d tall of their cases on a case by case basis as well as ethically pass some or all of the related costs

to the client.”Read more: http://www.litcapital.net/faqs/

Q&A WITH THE LITCAP FOUNDERS HTTP //LITCAPITAL NET/FAQS/FOUNDERSHTTP://LITCAPITAL.NET/FAQS/FOUNDERSQuestion #5: What is the long-term desire for the LitCap Marketplace?

Answer: “Lawyers have been financing their contingent cases the same way for decades, just as it was done whenAbraham Lincoln was trying cases, before the telegram, before the car, and before electricity or the internet. Having amarketplace that mitigates the ability for the big guy to outspend the little guy in litigation truly brings balance to the civilmarketplace that mitigates the ability for the big guy to outspend the little guy in litigation, truly brings balance to the civiljustice system in the United States. It circumvents the inherent conflict between a lawyer and his contingent client anddirectly benefits the State Bar IOLTA program in every state where LitCap is used. We believe that LitCap is to casecost financing what Westlaw and Lexis Nexus were to legal research.”

Question #6: Why did you create the LitCap Marketplace?Answer: “I’ve been practicing as a Civil Trial Lawyer for 10 years. During that time, it became obvious to me that theway contingent fee lawyers finance their client’s case related expenses was out dated. It was an honor to help buildsomething that will, in my view, have a tremendous impact on the way contingent lawyers are able to finance cases, org , y , p y g y ,provide options to clients who the money to cover case expenses. With LitCap, each client you add does not put astrain on your line of credit or personal money. Your success as a Lawyer brings clients to your door. Having to turn therefer clients or traffic away, the same traffic your success generated, because your current docket has exhausted yourline of credit or resources, is a very tough position to be in. Likewise, having to go back to the bank, and ask someonewho doesn’t understand your business, to extend your line of credit because you just had a monster case walk throughthe door, is equally frustrating. I believe that LitCap will enhance the way attorneys practice law, improve attorney clientrelationships, and provide “good” attorneys with access to potentially unlimited capital to use for the benefit of theirclients. Financing terms found on LitCap are often better than anything you could get from a bank or commercial loanand come with many added benefits. Civil litigation has some level of case related costs or expenses and often thesecosts can become quite large. LitCap makes it possible to fund all of your cases, no matter how large or how small, withthe click of a button.”

Q&A WITH THE LITCAP FOUNDERS HTTP //LITCAPITAL NET/FAQS/FOUNDERSHTTP://LITCAPITAL.NET/FAQS/FOUNDERSQuestion #5:

Answer: “When Lawyers take the time to learn about what we [LitCap] are doing, a light bulb goesoff and they instantly get it. It was designed for trial lawyers around the way they practice law, soy y g g y y y phaving contingent financing that mirrors a lawyer’s contingent contract with their client is veryappealing. Having the option to have multiple investors bid against each other for the lawyer’sbusiness is equally appealing. We have been told numerous times, ‘I just can’t believe no onehas thought of this before.”

Question #6:Answer:Answer:“Lawyers have been financing their contingent cases the same way for decades, just as it wasdone when Abraham Lincoln was trying cases, before the telegram, before the car, and beforeelectricity or the internet. Having a platform that mitigates the ability for the big guy to outspendthe little guy in litigation, truly brings balance to the civil justice system in the United States. Itcircumvents the inherent conflict between a lawyer and his contingent client and directly benefitsthe State Bar IOLTA program in every state where LitCap is used. We believe that LitCap is to

t fi i h t W tl d L i N t l l h ”case cost financing what Westlaw and Lexis Nexus were to legal research.”

Question #5:Answer:

April 8, 2014

ATTORNEY MARKETPLACEATTORNEY MARKETPLACELog In, List your Case, Get Funded.

Contact LitCap

Linda[at]litcap.net | Tel: (713) 946-6464 | 1314 Texas Ave., Suite 1110 Houston, TX 77002

UNLOCK STRANDED CASES COSTS

LitCap is the source for preeminent attorneys to obtain unlimited unsecured financing for case-related expenses.

Take control of your case financing today and contact LitCapMembership is free to qualified lawyers.