Hudson Litigation Capital

Definitions

A short glossary.

Terms as Hudson uses them in its documentation and correspondence.

The entries below record how Hudson uses each term in its documentation and correspondence. They are not legal definitions and are not advice on any particular matter.

SolutionsFAQs

A

Adverse Costs
An order that an unsuccessful party pay the successful party's costs. Where lawful and appropriate, protection against that exposure may form part of an approved commitment.
Assignment
The transfer of a claim, or of an economic interest in one, to another party. Whether a particular right is capable of transfer is a question of the applicable law and of the governing documents.

C

Champerty
The historical doctrine restricting third parties from financing litigation in exchange for a share of the recovery. Modern treatment varies by jurisdiction. Hudson conducts a champerty and maintenance review in every governing jurisdiction before committing capital.
Claim Quantum
The value of the loss claimed, by head of loss. Distinct from the capital commitment requested of Hudson.
Committed Capital
The maximum aggregate amount Hudson agrees to make available across the life of a matter. Where a capital band is published, it is tested against this figure and not against the initial draw.
Common Interest
A framework under which separately represented parties sharing a legal interest may exchange privileged material without waiver. Its availability depends on the jurisdiction and the relationship, and it does not arise automatically.
Counterclaim Finance
Capital for the prosecution of an affirmative monetary counterclaim, provided through Hudson Litigation Defense Capital. It does not extend to the cost of defending the underlying claim.

D

Drawdown
A staged advance of committed capital, ordinarily against agreed procedural or budgetary milestones rather than in a single payment.

E

Enforcement
The steps required to convert a judgment, award or entitlement into money, including recognition, asset tracing, freezing relief, insolvency routes and collection.

I

Information Barrier
The separation of records, personnel and decision-making between Hudson and Hudson Litigation Defense Capital, so that a counterclaim matter lodged with the affiliate is not visible in Hudson's ordinary deal flow.

L

Legal Independence
The principle that counsel and the client retain control of the litigation. Hudson does not select, instruct or supervise counsel, direct strategy, or control settlement.

M

Maintenance
The historical doctrine restricting improper support of another party's proceedings. Treated together with champerty in Hudson's pre-commitment legal review.
Monetisation
An advance against an existing judgment or award, so that the holder obtains liquidity before collection while retaining an agreed residual interest in the eventual recovery.

N

Non-Recourse
A structure in which repayment depends on a recovery. If the matter produces no recovery, Hudson bears the loss and does not look to the client for repayment, save in respect of fraud and defined default remedies.

P

Portfolio Finance
A facility supported by several qualifying legal assets rather than by a single matter, with capital drawn against the pool.

R

Recovery Event
The defined trigger under Hudson's documentation that obliges distribution: settlement, judgment, award, or a sale of the underlying legal asset.
Recovery Waterfall
The agreed order in which the proceeds of a recovery are distributed under the transaction documents.

S

Special Purpose Vehicle
A vehicle established for a defined transaction, so that one commitment is insulated from another.

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