Litigation Funder Woodsford Wins $1.8 Million in Law Firm Fight

Woodsford Group Ltd., a UK litigation funder, won a $1.8 million arbitration from a law firm it financed in a suit against Alphabet Inc.‘s Google.

The law firm, San Francisco-based Hosie Rice, failed to establish a basis for vacating the $1.8 million award, US District Court for the District of Delaware Chief Judge Colm Connolly wrote this week, affirming the finding of a magistrate judge.

“We are pleased but not in the least surprised” with the decision, said Steven Friel, Woodsford’s chief executive officer, in a statement. “We will continue with enforcement efforts until we have recovered the full amount of the debt owed to us.”

Woodsford invested about $800,000 in Space Data Corp.'s case against Google alleging patent infringement, trade secret misappropriation, and breach of contract claims. Space Data settled with Google, then refused to pay its law firm, Hosie Rice.

An arbitrator determined that Space Data owed Hosie Rice up to $4 million in fees and costs but denied “any additional contingency award.” The law firm then argued that it wasn’t required to pay Woodsford because the money was for legal fees and not a contingency award. Woodsford then sued Hosie Rice.

Law360 first reported Connolly’s decision.

The case is Frome Wye Limited v. Hosie Rice LLP, D. Del., 22-mc-00249-CFC-SRF, 9/18/23