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Litigation Financing Firm’s $3M Sanction Award Vacated

May 16, 2019, 7:59 PM

A litigation financing company was properly awarded default judgment in a malpractice suit it filed against a lawyer it hired to help protect its financial interest in litigation involving a Mexican law firm.

But the $3 million award in favor of Law Funder LLC must be recalculated, the Fifth Circuit said May 16.

Law Funder gives loans to plaintiffs to finance their suits in exchange for portions of the eventual winnings.

Law Funder hired Texas lawyer Sergio Munoz to help protect its investment in the legal work in Mexico by intervening in a divorce proceeding. Unbeknownst to Law Funder, however, ...