1. How is Manolete able to buy litigation actions? I understood that there were strict Champerty and Maintenance laws against this?
Working with senior Queen's Counsel, Manolete has designed specific funding products that safely fall outside the scope of the Champerty and Maintenance laws. We can provide funding directly to the Office Holder where the action has to be in his/ her name but in all other cases we can purchase the litigation outright
2. Will the Office Holder’s name continue to be associated with the litigation?
In cases where Manolete has purchased the claim or debt outright the Office Holder will have no connection whatsoever with the claim once he has sold it, in the same way that he would have no connection to an item of machinery or stock he had sold for the company in liquidation or administration.
We call this a “Type 1” transaction
Where the litigation needs to be pursued in the Office Holder’s name, the Office Holder will of course still be a party to the action. We refer to these as “Type 2” transactions
Under both transactions types, Manolete provides full indemnities to the Office Holder and ensures that he/she has no personal liability exposure whatsoever
3. How does Manolete legally structure its funding arrangements?
Type 1 transactions are structured as simple Sale and Purchase Agreements – exactly as the Office Holder would use when selling a physical asset
Type 2 transactions are governed by a Funding Agreement between Manolete and the Office Holder
4. What does the Office Holder or the Company need to pay for?
Where the litigation needs to be pursued in the Office Holder’s name, the Office Holder will of course still be a party to the action. We refer to these as “Type 2” Manolete pays the company an initial amount on signing of the agreement with you to at least cover your costs and then pays the company a share of proceeds (settlement or award) of the action. All invoices (legal, experts, cost insurance etc.) are wholly for our account.
5. How involved does the Office Holder need to be in the day to day running of the case?
Under Type 1 transactions where Manolete has purchased the claim, other than a short initial hand-over period, there is no need for any involvement at all
Under Type 2 cases it depends upon the nature of the case. If required, Manolete’s staff can handle the day-to-day project management of the case leading up to the issue of proceedings but once proceedings commence the Office Holder will need to take the lead on all important case related decisions
6. How does Manolete make a return on its investment?
Manolete pays an initial amount on signing of the agreement with the Office Holder, pays all the costs of prosecuting the action and makes its return by engineering a successful settlement of the case. After re-imbursement of its costs, Manolete pays an agreed percentage of that settlement back to the company and retains the balance. As Manolete invests in a wide range and large number of cases it takes a portfolio approach to its investments
7. How does Manolete price its
This really depends on the merits and features of the individual case. We offer a degree of flexibility – we can pay more or less up front for a higher or lower percentage of the eventual outcome. In certain Type 2 instances we can structure the investment as a loan if that better suits the Office Holder’s requirements