Don’t Delay – Use it or Lose it: Early Referrals to Manolete

When Best to Refer a Claim to Manolete?

As specialists in insolvency litigation finance, our 18 strong in-house legal team at Manolete supports the invaluable work done by Insolvency Practitioners and their chosen solicitors in the process of identifying, assessing and financing claims which can potentially recover significant value for insolvent estates.

With our financial support, we de-risk the vital work done by IPs and their legal teams. We work in a unique three-way partnership: the IP, external solicitors, supported by Manolete financial backing to bring about a successful result.

However, delaying the referral of a claim to us can create difficulties in achieving a successful recovery. It is important to always keep a wary eye on your window of opportunity to successfully recover: it is shrinking. The longer each claim goes on, the narrower the chance of bringing a successful recovery.

The Benefits of Early Referral

Referring a case to Manolete at the earliest opportunity provides numerous advantages for office holders:

• Timely Recovery: Early referral ensures we can act quickly to help achieve a successful recovery, thereby working towards preventing dissipation or disposal of assets held by our target defendant. With 16 years’ experience of insolvency litigation across over 1,300 financed UK insolvency claims, Manolete has an average time of completing those cases of just 12 months. Time is money and time is of the essence to secure the optimal return for the Insolvent Estate. There is no cost to submit an inquiry.
• Stronger Evidence: Prompt action and securing full financing to support claims then allows time and resources to gather and preserve crucial evidence before it becomes difficult to obtain or memories fade.
• Avoiding Legal Issues: Timely referrals help mitigate the risk of legal defences being raised such as laches (see below), where a defendant may successfully argue that an unreasonable period of delay has prejudiced their case.

How Delay Can Create Problems

Delay in referring a claim can lead to several issues:

• Laches: This legal doctrine means "delay, inexcusable, and prejudicial." It allows defendants to argue that the claimant’s delay has harmed their ability to defend themselves, sometimes resulting in the claim being dismissed.
• Evidential Challenges: Over time, crucial evidence can become harder to obtain and witnesses' memories may fade, weakening the claim.
• Judicial Discretion: In insolvency claims, judges often have discretionary power. Delay is a factor they may consider against the claimant, potentially reducing the chances of a favourable outcome.

Conclusion

Given the potential difficulties arising from delays, we strongly encourage Insolvency Practitioners and their chosen external legal advisers to refer claims to us as early as possible. Early involvement allows us to:

• work with you to ensure cases are thoroughly investigated, ensuring all relevant evidence is gathered and preserved.
• pursue claims more effectively, increasing the likelihood of successful recovery. An example is a commitment we have recently made to procure an expert’s report where the fees for the report are in the region of £75,000.

Early referral maximises the chances of recovering value for the insolvent estate, benefiting all stakeholders involved. Our team of experts is always ready to discuss potential claims and provide litigation finance support to help maximise returns through our three-way partnership.

Andrew Cawkwell
Head of Business Development and Associate Director for the North East