First Successful Judgement For Litigation Funder In New Zealand

The Australian-based litigation funding company Quantum Litigation Funding has had its first judgment in New Zealand almost a year after it launched itself into the New Zealand market.

The case - a dispute over entitlement of wine - was between the receivers of Anthem Holdings Ltd, and Dave Henderson, the director of the company and developer of the stalled Five Mile project in Frankton.

The wine is estimated to be worth more than $1 million.

Quantum Litigation assists individuals, businesses and insolvency practitioners pursue legal claims across Australia and New Zealand where they don't have the funds to progress litigation.

Kensington Swan is responsible for giving Quantum Litigation Funding advice on applications for funding within New Zealand.

Quantum assumes clients' legal costs in exchange for a proportion of the settlement if the cases are successful.

In the Christchurch High Court, Justice French found the receivers - rather than Dave Henderson - are entitled to immediate possession of the wine from the 2006, 2007 and 2008 vintages.

And French J indicated they are entitled to manage each of the vintages in accordance with their obligations under the Receiverships Act (1993)

Quantum Litigation Funding Managing Director Greg Tilse says the judgement is a victory for litigation funding in New Zealand.

"One of the reasons we launched in New Zealand is because there are genuine claims in this country not being pursued because of a lack of funding.

"This case shows that litigation funding can level the playing field for insolvency practitioners."

Kensington Swan Partner Dan Hughes says the arrival of Quantum Litigation in the New Zealand market has been positive.

"One of the benefits of litigation funders getting involved is that practitioners are now able to chase recalcitrant directors and claims that otherwise wouldn't have been pursued," he says.