Appeals Court Dismisses Burford Appeal of ‘Fatally Flawed’ Order

Burford Capital’s appeal of an order that granted a motion to enforce settlements in Sysco Corp.‘s meat price-fixing lawsuits was dismissed Wednesday for a lack of jurisdiction.

The US Court of Appeals for the Seventh Circuit said the order is “fatally flawed” because it “fails to provide any relief whatsoever.” The order places appellants under no obligations because it is not an injunction, thus depriving the appellate court of jurisdiction, the judges wrote.

Litigation funder Burford gave Sysco $140 million to pursue price-fixing lawsuits against meat producers. Burford later sought to scuttle settlements in at least two of the suits, calling the dollar amounts too low.

Sysco later agreed to allow a Burford affiliate to take over the claims. Meat producers, however, have opposed efforts to substitute Burford, arguing that the funder lacks a direct connection to the litigation.

Judge Thomas Durkin of the Northern District of Illinois ruled in June that one of the settlements was enforceable, even though Sysco didn’t sign it and later transferred its claims to Burford. Sysco agreed to the “heart” of the deal in email communications and draft documents, Durkin found.

The terms of the deal have not been made public. Burford declined to comment.

The case is: Carina Ventures LLC v. Pilgrim’s Pride Corporation, 7th Cir., 24-2100, 8/14/24