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With lawfare on the rise, courts are becoming a venue for politics

Published

2 years ago

April 12, 2024

With lawfare on the rise, courts are becoming a venue for politics

The opinions expressed in this article are those of the author and do not represent in any way the editorial position of Euronews.

Usually with no leg to stand on, the objective of these claims is to disrupt and clog the system and cause chaos, Pieter Cleppe writes.

Long gone are the days when politics was confined to parliaments. Apart from the growingly politicised and polarised media, the courtroom is increasingly becoming a political venue, with third-party litigation funding being particularly concerning.

Both in Europe and the US, there has been increased scrutiny of third-party litigation funding.

This is a phenomenon where claimants in court cases no longer fund their own cases. Instead, they are bankrolled by investment firms, who basically see it as an attractive, if insecure, investment.

Bloomberg Law recently disclosed how Russian billionaires close to President Vladimir Putin have been secretly pouring money into US courts through third-party litigation funding in a bid to contest the sanctions they have been subject to.

The gist is that by investing millions without even showing their face in court, some malevolent actors have found lawfare a useful tool to laugh in the face of law and justice and syphon their money across the border while doing it.

Chinese claims are now targeting intellectual property in the US

In another example, a company based in China has been clandestinely funding intellectual property lawsuits against Samsung, using a Florida tech company as a front, to claim that the South Korean giant used its intellectual property in its popular audio products.

The essence of the problem here is that the funders “often manipulate civil litigation for their own purposes”, according to a letter to the heads of a US congressional committee in October by major pharma companies Bayer and Johnson & Johnson.

In the letter, they complain that the litigation finance industry “goes to great lengths to operate in complete secrecy,” demanding more transparency.

The fear here, backed by the US Chamber of Commerce, is that litigation financing could allow Washington’s adversaries to obtain confidential information about sensitive technologies.

In any case, US House Speaker Mike Johnson and Senator John Kennedy, have already taken legal action, having submitted a legislative proposal that would regulate foreign entities’ ability to fund litigation.

Business groups like the US Chamber of Commerce support this, as they believe the shortage of available information about who is financing cases opens the door for foreign adversaries to undermine US national security.

An EU directive is in the works

Also in Europe, legal action is on the way. Last summer, the European Parliament recommended to the European Commission to propose a Directive on the regulation of third-party funding in the EU, aptly named “Responsible funding of litigation”, with the goal of regulating third-party funders’ financing proceedings in the EU.

If adopted, it would create a minimum standard for third-party funders in the EU and establish a supervisory authority granting permits to funders and monitoring their activities.

It would also hold funders jointly liable with the funded disputing party to pay the cost of the proceedings that may be awarded, impose an obligation on funders to adequate financial resources to fulfil their liabilities under the funding arrangement, impose a fiduciary duty of care the funder owes toward the funded disputing party, establish specific disclosure and transparency obligations to inform competent judicial or administrative organs of the existence of a funding arrangement and limit the financial stake of funders to 40% of the amount of compensation awarded, save for exceptional circumstances.

The directive was spurred on by a number of questionable claims that have seen a spike in recent years. Usually with no leg to stand on, the objective of these claims is to disrupt and clog the system and cause chaos, with profits nothing more than a side quest.

Yet, sometimes, a case like this can end up hurting an entire country’s GDP, too.

The Sultanate of Sulu case continues to raise eyebrows

A prominent example in Europe of litigation funding is a case brought by a Spanish private arbitrator, Gonzalo Stampa, who demanded Malaysia to pay a $14.9 billion (€13.7bn) arbitral award to a group of individuals claiming to be heirs of the last sultan of Sulu, a territory now belonging to Malaysia. Kuala Lumpur rejected the claim, arguing the case represented a challenge to its sovereignty.

The legal claims of the sultan’s heirs had been financed by a global litigation and arbitration finance firm, the London-based Therium.

Even if there was no link to Spain, the claimants still brought the case there to the judicial authorities eager to find any judicial forum to get their way. As a result, Stampa, who specializes in international mediation, was appointed by the Civil and Penal Chamber of Spain’s Supreme Court (TSJM) as the arbitrator of the case.

Following legal challenges by the Malaysian government on the grounds that the required procedure had not been followed, Spain’s Supreme Court ruled in June 2021 to remove Stampa from the case, thereby granting the Malaysian government’s request for dismissal.

While Stampa was ordered to end the arbitration several times, the arbitrator ignored those orders and even changed the arbitration venue from Madrid to Paris on disputable legal grounds.

There, he issued his final ruling, granting the massive award, making it the second highest ever rendered, and amounting to 1% of Malaysia’s GDP. It’s peculiar that such important cases tend to involve multiple arbitrators, rather than just one, with the entire proceedings including payment to Stampa apparently funded by Therium.

Later, an appeal in France overturned the decision, and remarkably, Stampa was found guilty of contempt of court for failing to comply with an earlier court ruling ordering him to drop the complex legal battle.

It’s time to stop and think what to do next

Imposing to disclose who’s funding a court case may deter outside investors and mean “less access to legal finance”, but that hasn’t stopped legal action being initiated both in Europe and the US related to the practice of third-party litigation funding.

Looking at the whole range of extra bureaucracy the European Parliament has in mind, perhaps it is important to take a pause.

Allowing judges to decide on a case-by-case basis to what extent claimants need to be transparent, particularly in a contentious case where national security could be at risk, might just be a better way forward.

Pieter Cleppe is the editor-in-chief of BrusselsReport.eu and a former attorney-at-law.

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World

Sporticast 510: The Sordid Saga of a Legends’s Former Mansion

Published

58 minutes ago

December 16, 2025

Press Room

On the latest Sporticast episode, hosts Scott Soshnick and Eben Novy-Williams discuss some of the biggest sports business stories of the week, including the latest in a strange sports real estate story.

In 2012, Michael Jordan listed his Bulls-era mansion outside Chicago for about $29 million, or $41 million in today’s dollars. It took more than a decade and multiple price drops for the home to sell, which it did late last year for $9.5 million. The buyer, a partner in a local real estate firm, has since tried multiple ways to monetize the property. Initially he tried to sell timeshares for $1 million each, but that plan was thwarted by the local town council. He’s back in front of that same council this week, seeking approvals related to his next plan: to build a “multi-sensory experience focused entirely on personal transformation.” The tourist attraction would require the use of a parking lot on an adjacent nature preserve.

Next the hosts discuss major upset in college sports. Nebraska’s women’s volleyball team, the top seed in this year’s NCAA tournament, was upset by Texas A&M in the quarterfinals. Riding a wave of volleyball commercial growth, the Huskers spent more on the sport than any other public school in the country, according to numbers from Sportico‘s college finance database. The team reported $2.57 million in ticket sales during the 2023-24 school year, the third highest total for any women’s team at any public school in the country, trailing only Iowa and UConn women’s basketball.

They close by taking about the Big 12‘s proposed private equity plan. A few days after Big 12 member Utah laid out its own on-campus capital ambitions, Sportico reported that the Big 12 is in talks to set up what essentially amounts to a credit facility for its members via a potential partnership with RedBird Capital-backed Collegiate Athletic Solutions.

(You can subscribe to Sporticast through Apple, Spotify, or wherever else you get your podcasts.)

World

Bystanders seen confronting Australian gunman during ISIS-inspired deadly rampage

Published

2 hours ago

December 16, 2025

Press Room

Bystanders seen confronting Australian gunman during ISIS-inspired deadly rampage

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Bystanders were seen on video confronting a gunman before his ISIS-inspired deadly mass shooting at Bondi Beach in Sydney, Australia, could begin.

Despite their efforts to disarm him, the gunman eventually overpowered the two bystanders and killed them, according to authorities.

The bystanders were later identified as Boris and Sofia Gurman, according to the Sydney Morning Herald. The outlet reported that the Gurmans were walking by as they saw the assailant exiting a vehicle. Though Boris had the upper hand for a moment after picking up the shooter’s rifle, the attacker allegedly picked up another rifle during the confrontation and fatally shot the couple, making them the first victims of the massacre.

“We are heartbroken by the sudden and senseless loss of our beloved Boris and Sofia Gurman,” the family said in a statement on Tuesday afternoon, according to the Sydney Morning Herald. “While nothing can lessen the pain of losing Boris and Sofia, we feel an overwhelming sense of pride in their bravery and selflessness.”

RABBI KILLED IN SYDNEY HANUKKAH ATTACK HAD WARNED AUSTRALIAN PM ABOUT RISING ANTISEMITISM

Bystanders were seen confronting one of the gunmen behind the deadly attack on a Hanukkah celebration at Australia’s Bondi Beach. (Jenny/Reuters)

In the video, obtained and verified by Reuters, an eyewitness replaying the dashcam footage recalls how the incident unfolded.

“You see the shooter here — he fired shots from here, shooting from here. And then look, this guy went and tackled him (shooter), knocking him to the ground. At that point, he had already grabbed the gun,” the witness, who was speaking in Mandarin, said in the video, according to a Reuters translation.

Authorities have identified the shooters as a father, 50, and a son, 24. The father was killed at the scene, while the son was shot by police and taken to the hospital in critical condition. Australian authorities also said that the shooters had improvised explosives and homemade ISIS flags in their vehicle.

On Sunday, the pair opened fire on families celebrating Hanukkah at Bondi Beach, killing 15 people and leaving more than two dozen injured. The Australian government is investigating the incident as a terror attack targeting the Jewish community.

GAL GADOT, ASHTON KUTCHER CONDEMN ANTISEMITIC TERROR ATTACK AT BONDI BEACH HANUKKAH EVENT

Police teams take security measures at Bondi Beach in Sydney, Australia, on Sunday after a terrorist attack targeting the Jewish community during the first night of Hanukkah. ( Claudio Galdames A/Anadolu via Getty Images)

During the deadly rampage, another bystander, Ahmed al Ahmed, an Australian immigrant, wrestled a gun away from one of the shooters. His attorney said that Ahmed does not regret intervening, despite being “riddled with bullets” and in intense pain.

“He doesn’t regret what he did. He said he’d do it again. But the pain has started to take a toll on him,” Ahmed’s attorney, Sam Issa, told The Sydney Morning Herald. “He’s not well at all. He’s riddled with bullets. Our hero is struggling at the moment.”

The outlet reported that Ahmed has undergone his first round of surgery and that Issa fears the hero bystander may lose his left arm.

“He’s a lot worse than expected. When you think of a bullet in the arm, you don’t think of serious injuries, but he has lost a lot of blood,” Issa said.

President Donald Trump praised Ahmed for his actions, calling him “a very, very brave person” and saying that he has “great respect” for him.

People attend a floral memorial in honor of the victims of a mass shooting that targeted a Hanukkah celebration on Sunday, at Bondi Beach, in Sydney, Australia, Dec. 16, 2025. (Flavio Brancaleone/Reuters)

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The Bondi Beach attack is the worst mass shooting Australia has seen since the country implemented sweeping reforms after a shooter killed 35 people in Port Arthur, Tasmania, in 1996. Following the Bondi Beach attack, Australian leaders have vowed to strengthen the country’s already restrictive gun laws.

Prime Minister Anthony Albanese announced several proposed actions, including limiting the number of guns one can possess.

“The government is prepared to take whatever action is necessary. Included in that is the need for tougher gun laws,” he said after meeting with his National Cabinet.

Fox News Digital’s Louis Casiano, Bradford Betz and Alex Nitzberg contributed to this report.

Rachel Wolf is a breaking news writer for Fox News Digital and FOX Business.

World

Venezuelan opposition leader Machado injured on covert Nobel Prize trip

Published

3 hours ago

December 16, 2025

Press Room

Venezuelan opposition leader Machado injured on covert Nobel Prize trip

President Maduro’s rival was hurt as she sped on a boat through choppy waters in secret escape from hiding to reach Oslo ceremony.

Published On 16 Dec 2025

Venezuelan opposition leader Maria Corina Machado was injured as she made a clandestine dash to collect her Nobel Peace Prize last week, her spokesperson has said.

Claudia Macero said late on Monday that the right-wing opposition figure fractured a vertebra during a choppy boat ride that had formed part of a risky cloak-and-dagger journey to reach the Norwegian capital, Oslo, for the Nobel award ceremony.

Dangerous dash

Media reports in the United States said Machado’s escape last week involved wearing a disguise, including a wig, and travelling from a small Venezuelan fishing village on a wooden boat to the island of Curacao, before boarding a private plane to Norway.

Machado has said she feared for her life during the voyage, which saw US forces situated in the Caribbean alerted to avoid a strike on the vessel.

Several similar boats have been attacked in recent months in a campaign that the Trump administration asserts is a bid to avert drug smuggling into the US.

Maduro has accused Washington of seeking to engineer regime change in the hope of seizing Venezuela’s large oil reserves.

The leader of the opposition Vente Venezuela party was attempting to reach the ceremony at which she was due to be presented with the Nobel Peace Prize.

She was announced the winner of the prestigious award in October, with the selection committee praising her role in the country’s opposition movement and her “steadfast” support for democracy.

‘Broken soul’

Despite her speedy trip, Machado failed to reach Oslo in time for the ceremony. Her daughter received the award on her behalf and delivered a speech that slammed Maduro and warned of the need to fight for democracy.

Hours after the ceremony, early on Thursday morning, Machado greeted supporters from an Oslo hotel balcony in what was her first public appearance in a year.

Despite the fracture, she climbed over a barrier to greet supporters outside the hotel, AFP reported.

Machado said authorities in Venezuela would have attempted everything possible to prevent her journey to Norway.

Appearing set to challenge Maduro in the vote, the opposition leader was barred from running in the country’s presidential election in July last year.

She then announced that she would be going into hiding within Venezuela due to fear for her life while Maduro is in power.

The Venezuelan president commented dismissively on the reports of Machado’s injury on television on Monday.

Machado “says she has a broken vertebra”, he said. “What’s broken is her brain and her soul because she’s a demon – she hates Venezuela.”