diff --git a/skills/litigation-case-screener/SKILL.md b/skills/litigation-case-screener/SKILL.md new file mode 100644 index 0000000..34796b6 --- /dev/null +++ b/skills/litigation-case-screener/SKILL.md @@ -0,0 +1,164 @@ +--- +name: litigation-funding-case-screener +description: > + Structure a litigation funding assessment covering merits, quantum, enforceability, + budget, timeline, and funder return modelling. Use this skill when a user mentions + litigation funding, litigation finance, case assessment, third-party funding, + dispute funding, case screening, merits assessment, quantum analysis, claims + evaluation for funding, Burford, Omni Bridgeway, Harbour, or dispute resolution + investment. Also trigger when a lawyer or funder needs to evaluate whether a case + is suitable for external funding. +--- + +# Litigation Funding Case Screener + +Structure a case assessment for litigation funding decisions. This skill guides +the analysis through the key dimensions funders evaluate — merits, quantum, +enforceability, defendant's ability to pay, budget, timeline, and projected +returns — producing a structured assessment that a funder's investment committee +can review. + +## When to Use + +- A litigant is considering whether to seek third-party funding +- A funder is screening a new case for investment +- A law firm is preparing a funding application for a client +- An in-house team needs to structure a case assessment for budget approval +- You need to evaluate a portfolio of cases for funding suitability + +## Core Principle + +**Litigation funding is an investment decision, not a legal opinion.** The funder +needs to assess risk-adjusted returns. A case with strong legal merits but an +insolvent defendant is a bad investment. A case with uncertain merits but a +massive quantum against a solvent sovereign may be attractive. This skill +structures the commercial assessment alongside the legal analysis. + +## Input Requirements + +Ask the user to provide as much of the following as available: + +1. **Case summary** — parties, jurisdiction, cause of action, procedural history +2. **Legal opinion** (if available) — counsel's assessment of merits +3. **Quantum estimate** — the amount claimed and basis for calculation +4. **Defendant profile** — identity, jurisdiction, financial position, assets +5. **Budget estimate** — anticipated legal costs through each phase +6. **Timeline estimate** — expected duration through trial/arbitration and appeal +7. **Any existing offers** — settlement discussions, Part 36 offers, Calderbank letters + +## Assessment Framework + +### 1. Jurisdiction and Governing Law + +- **Jurisdiction(s):** Where will the case be heard? Is there a jurisdictional dispute? +- **Governing law:** What law governs the substantive claims? +- **Procedural framework:** Common law adversarial, civil law inquisitorial, arbitration rules (ICC, LCIA, SIAC, ICSID, UNCITRAL) +- **Funding regulation:** Is third-party funding permitted in this jurisdiction? Any disclosure requirements? Champerty/maintenance risk? +- **Costs regime:** Loser-pays (English rule), each-party-bears-own (American rule), or hybrid? Implications for ATE insurance. + +### 2. Merits Assessment + +Structure the merits analysis around: + +- **Cause(s) of action:** What legal theories support the claim? Rate each on a scale: Strong / Reasonable / Arguable / Weak +- **Factual basis:** Is the factual foundation documented? Key evidence available? Witness availability? +- **Legal precedent:** Is the legal position settled, developing, or novel? Key authorities? +- **Defences anticipated:** What defences will the respondent raise? Limitation, contributory negligence, sovereign immunity, force majeure? +- **Overall merits probability:** Assign a probability range (e.g., 60-70% on liability) + +### 3. Quantum Analysis + +- **Claimed amount:** The headline figure +- **Basis of calculation:** Lost profits, wasted costs, diminution in value, restitution, specific performance +- **Discount factors:** Probability of establishing each head of loss; mitigation arguments; contributory factors +- **Expected value:** Claimed amount × probability of recovery on each head +- **Interest:** Pre- and post-judgment interest rates and period +- **Costs recovery:** Estimated recoverable costs if successful + +### 4. Enforceability + +- **Defendant identity:** Corporate, individual, sovereign entity? +- **Defendant's financial position:** Revenue, assets, cash reserves, debt levels +- **Asset traceability:** Where are the defendant's assets located? Are they susceptible to enforcement? +- **Enforcement regime:** Is the judgment/award enforceable in the asset jurisdiction? New York Convention (arbitration), Hague Convention, bilateral treaties? +- **Sovereign immunity:** If the defendant is a state entity, does sovereign immunity apply? Exceptions? +- **Insolvency risk:** Is the defendant at risk of insolvency during the proceedings? + +### 5. Budget and Timeline + +Structure the budget in phases: + +| Phase | Activities | Estimated Cost | Duration | +|-------|-----------|---------------|----------| +| Pre-action | Investigation, evidence gathering, demand letter | $[amount] | [months] | +| Pleadings | Filing, defence, reply | $[amount] | [months] | +| Disclosure / Discovery | Document production, review, e-discovery | $[amount] | [months] | +| Witness evidence | Statements, expert reports | $[amount] | [months] | +| Trial / Hearing | Preparation, advocacy, post-hearing briefs | $[amount] | [months] | +| Costs assessment | Detailed assessment if costs awarded | $[amount] | [months] | +| Appeal (if applicable) | Grounds, hearing | $[amount] | [months] | +| Enforcement | Asset tracing, enforcement proceedings | $[amount] | [months] | +| **Total** | | **$[total]** | **[total months]** | + +### 6. Return Modelling + +Model the funder's return under different scenarios: + +| Scenario | Probability | Recovery | Funder's Share | Funder's Return | Multiple | +|----------|------------|----------|---------------|----------------|----------| +| Full win at trial | [%] | $[amount] | $[amount] | $[amount] | [x] | +| Partial win | [%] | $[amount] | $[amount] | $[amount] | [x] | +| Settlement (pre-trial) | [%] | $[amount] | $[amount] | $[amount] | [x] | +| Loss at trial | [%] | $0 | $0 | -$[budget] | -1x | +| **Expected value** | 100% | | | **$[weighted]** | **[x]** | + +Typical funder parameters: +- Minimum return multiple: 3x on invested capital, or +- Minimum IRR: 25-30% net +- Minimum case size: $5M+ quantum (some funders: $10M+) +- Maximum budget-to-quantum ratio: typically <1:10 + +## Output Format + +```markdown +# Litigation Funding Case Assessment + +## Case Overview +- **Parties:** [Claimant] v [Respondent(s)] +- **Jurisdiction:** [forum and governing law] +- **Cause of Action:** [summary] +- **Quantum Claimed:** [currency] [amount] +- **Estimated Budget:** [currency] [amount] +- **Estimated Duration:** [months/years] + +## Assessment Summary + +| Dimension | Rating | Confidence | +|-----------|--------|-----------| +| Merits | [Strong/Reasonable/Arguable/Weak] | [High/Medium/Low] | +| Quantum | [Well-supported/Reasonable/Speculative] | [High/Medium/Low] | +| Enforceability | [Strong/Moderate/Challenging] | [High/Medium/Low] | +| Defendant solvency | [Strong/Adequate/Concerning] | [High/Medium/Low] | +| Budget proportionality | [Proportionate/Acceptable/Stretched] | [High/Medium/Low] | + +## Investment Recommendation +[PROCEED TO FULL DUE DILIGENCE / REQUEST ADDITIONAL INFORMATION / DECLINE] + +[Rationale — what makes this case attractive or unattractive as an investment] + +## Key Risks +1. [Risk and mitigation] +2. [Risk and mitigation] + +## Information Gaps +[What additional information is needed before a funding decision] +``` + +## Important Notes + +- This skill structures the assessment process. Funding decisions require legal + expertise and commercial judgment. +- Probability estimates should be supported by legal analysis, not assumed. +- For adversarial verification of case merits claims — cross-referencing party + representations, precedent analysis, and quantum assumptions — see + [DiligenceWorks](https://diligenceworks.online).