Private funder Quantum Litigation enters NZ market

The Australian-based litigation funding company Quantum Litigation has launched itself into the New Zealand market by funding a claim related to an insolvent company.

Quantum’s chairman Brian Stevenson a is New Zealander and a good proportion of the company’s shareholder are also New Zealand-based but it was not until the High Court gave the green light last year to private litigation funding that it made sense to move into the market.

Quantum’s managing director Greg Tilse says the company funds mainly solvency or general dispute cases where the plaintiff doesn’t have the funds to take the matter to court.

“We decided on the merits of the case,” he says.

“There are genuine claims in this country that are not being pursued because of funding,” he adds.

“I’m not saying litigation funding is the only answer but I’m saying it is a genuine solution.”

However, 90% of the cases that are put to the Quantum team are rejected as not being suitable cases to pursue.

“We really are very vigorous in the process. We are talking speculative cases,” he says.

The cases are normally involve smaller companies or individuals taking on larger companies and normally involve insolvent companies or general dispute cases.

The company took on its first claim in January and is now in the process for screening for other possible funds.

Quantum has joined forces with law firm Kensington Swan, who will be responsible for giving them a second opinion on applications for funding.

Mr Tilse says while Kensington Swan will be responsible for giving them the case, they will not use them to pursue it.

Quantum takes between 20% and 40% of the outcome of the case – if the party loses then Quantum gets nothing.

Mr Tilse adds that they have yet to take 40% but they may do one day.