Hudson Litigation Capital

Frequently asked questions

Plain answers, plainly given.

Mandate, commercial terms, process and confidentiality.

The questions counsel and claimants ask most often. Nothing here is legal advice, and nothing here is an offer of capital. Terms for a particular matter are set out in writing for that matter alone.

Make a preliminary enquiryRead the mandate
§ 01

The Institution

Who we are.

What does Hudson Litigation Capital do?
Hudson is an institutional legal capital and dispute finance platform. It finances the prosecution of commercial disputes, finances or acquires claims, judgments and awards, funds enforcement and recovery, and provides portfolio, law firm and post-outcome capital. Hudson is not a law firm, does not act for claimants and does not give legal advice.
Is Hudson a litigation funder?
Litigation finance is one part of what Hudson does. The platform spans dispute finance, claims and recovery, portfolio and law firm capital, and post-outcome capital, and a matter is placed within that range according to what the legal asset actually is.
Is the capital recourse or non-recourse?
Dispute finance is provided on a non-recourse basis: if the matter produces no recovery, the client owes nothing on the capital deployed, save in respect of fraud and defined default remedies. Acquisition, receivables and post-outcome transactions are structured according to their own economics, which are settled in the documents.
Do you work with claimants directly, or only through counsel?
Both. A claimant may open a file. No commitment is made unless counsel of record has been identified or is capable of being formally engaged.
In which jurisdictions do you operate?
Principally the United States, England and Wales, Singapore, Hong Kong, Germany, France, the Netherlands and Mexico, together with the major arbitral institutions. Other fora are reviewed matter by matter. Financing must be lawful and professionally permissible in the governing jurisdiction and in each jurisdiction where recovery is expected.
§ 02

Mandate

What we will consider.

What kinds of matters are eligible?
Commercial and contractual disputes, shareholder and fiduciary claims, competition damages, international arbitration, intellectual property, civil fraud and asset recovery, professional liability, insolvency and creditor recoveries, judgments and awards, enforcement campaigns and appellate proceedings, in each case where loss is capable of quantification and a recovery can realistically be collected.
What will you not finance?
Personal injury, mass tort and consumer class actions; consumer and small commercial disputes; the cost of defending a claim; matters with no identified or engageable counsel; matters with no solvent obligor or reachable assets; criminal, regulatory, matrimonial and family work; and anything where financing would be unlawful or professionally impermissible in the governing jurisdiction.
How much capital do you commit?
Commercial Litigation Finance carries a published committed-capital band of USD 2 million to USD 15 million. Counterclaim finance through Hudson Litigation Defense Capital carries a published committed-capital band of USD 5 million to USD 15 million. The other solutions carry no published band and are sized transaction by transaction.
How is the band tested?
Against the maximum aggregate capital commitment requested of Hudson across the life of the matter. It is not tested against the initial draw, and it is not assumed to equal the total legal budget.
How large must the claim be?
Claim quantum is ordinarily USD 15 million or more. That is an expectation reflecting the economics of institutional capital, not an automatic eligibility threshold.
My matter sits below or above the published band. Is there a route?
A request outside a published band is not automatically refused. It is reviewed on the same terms as any other submission. Where the position affects the commercial terms available, that is confirmed to the applicant and to counsel in writing before any obligation arises.
§ 03

Commercial Terms

What it costs.

Is there a charge to have a matter looked at?
No. Nothing is payable to open a file, to make a submission or to receive a preliminary view. No obligation arises until Hudson has confirmed in writing what is payable, on what basis and when.
Are there fees for submitting or having a matter reviewed?
No fee is payable merely to submit a matter or for HLC’s preliminary institutional review. If a transaction advances into a fee-bearing structure, any applicable fee and its treatment are disclosed in writing before the counterparty incurs that obligation.
Are your fees and returns published?
No. Pricing depends on the solution, the structure and the matter. Fees, where any apply, and the return arrangements are set out in writing for the specific transaction before any obligation arises. Hudson does not publish rates, multiples or return figures.
Does counterclaim finance carry an upfront fee?
No. Hudson Litigation Defense Capital carries no upfront or origination fee.
How is Hudson repaid?
From defined proceeds of the matter, in the order agreed in the transaction documents. The client's share and the order of distribution are settled in those documents before any capital is deployed.
Where money has already been committed to an earlier judgment or security, is it within scope?
No. Amounts already committed to a prior entitlement or security sit outside the funded perimeter. Those arrangements are identified during review and reflected in the documents.
§ 04

Process

How a matter proceeds.

Is an initial enquiry a formal submission?
No. An initial enquiry is not a formal submission and does not mean that a matter has been accepted for review. Hudson may first request limited preliminary information before determining whether to invite a matter into its formal intake process.
Does an invitation to submit mean Hudson is interested in funding?
No. An invitation to make a formal submission is a procedural step only. It is not an indication of interest, eligibility, an assessment of the matter, or of any terms on which Hudson might act.
Must I already have counsel before making an initial enquiry?
No. Counsel need not already be retained to make an initial enquiry. The status of legal representation is relevant to Hudson's review and may be clarified before a matter progresses further.
Should I send documents with an initial enquiry?
No. Please do not send substantive documents or evidentiary materials with an initial enquiry. If a matter progresses, Hudson will provide instructions for the appropriate confidentiality process and secure exchange of materials.
What happens after I submit a matter?
Business development makes the first written contact and acknowledges the submission, ordinarily within one to two business days. Where the matter falls within mandate, Hudson puts confidentiality arrangements in place, seeks confirmation from counsel, and requests the case materials and client verification documentation.
What are the stages of review?
Written submission and first contact; legal clearance, including conflicts and permissibility in the governing jurisdiction; commercial assessment, which fixes the solution and the capital position; substantive analysis of merits, quantum, budget and recovery; and documentation, followed by staged deployment and monitoring for the life of the transaction.
How long does review take?
Business development acknowledges a submission ordinarily within one to two business days. A preliminary view ordinarily follows within two to four weeks of a complete record. Full underwriting and Investment Committee consideration follow only where a matter advances, and their duration depends on the completeness of the record and the complexity of the matter. Hudson will tell you where a matter stands rather than leave it open indefinitely.
What is a conditional hold?
Where a matter is credible but the record is incomplete, it may be placed on a conditional hold, with a stated expiry and a stated list of what is awaited. A hold reserves Hudson's attention. It is not a commitment of capital.
Will you meet by call or video at the outset?
Not before the written record is in place. A call follows written confirmation from counsel and Hudson's own assessment, which keeps the process disciplined and the record clear.
§ 05

Confidentiality and Independence

Control and confidentiality.

Will you control the litigation or the settlement?
No. Counsel and the client retain control of the litigation. Hudson does not select, instruct or supervise counsel, does not direct pleadings, evidence, witnesses or strategy, and does not control settlement.
How is my information handled?
Material shared with Hudson is treated as confidential and is handled under a written confidentiality agreement executed before substantive documents are exchanged. Hudson does not seek privileged material beyond what is reasonably necessary for its assessment and monitoring.
Is my information privileged, and is Hudson's involvement always private?
Hudson does not represent that its confidentiality arrangements confer privilege, that common-interest protection arises automatically, or that its involvement will never be disclosed. Disclosure obligations differ by jurisdiction, forum and procedural rule, and any applicable obligation is complied with. The position in your matter is a question for you and your counsel.
How is counterclaim finance kept separate?
Hudson Litigation Defense Capital is a separate entity with its own capital, its own committee and its own records. Counterclaim matters lodged with the affiliate are handled behind an information barrier and are not visible in Hudson's ordinary deal flow.
Why is client verification documentation required?
Because institutional capital is being deployed and Hudson must satisfy conflicts, sanctions and source-of-funds obligations. Conflicts screening, client verification and credit enquiries are consented to separately and are used for no other purpose.

Published parameters describe how Hudson ordinarily deploys capital. They are not eligibility rules, and a submission neither establishes eligibility nor commits Hudson to fund a matter.

Continue

Put the question to us in writing.

Counsel and claimants may write to us directly, or submit a matter for review. Correspondence is treated as confidential.

Make a Preliminary EnquiryRead the Mandate