Connect with us

World

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

Published

on

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.

ADVERTISEMENT

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. 

Advertisement

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. 

Advertisement

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.

Advertisement

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. 

ADVERTISEMENT

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. 

Advertisement

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.

ADVERTISEMENT

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.

Advertisement

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

At Euronews, we believe all views matter. Contact us at view@euronews.com to send pitches or submissions and be part of the conversation.

ADVERTISEMENT
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

World

Paul Skenes Rookie Card Hunt Pits Auction House Against Pirates

Published

on

Paul Skenes Rookie Card Hunt Pits Auction House Against Pirates

The hottest bidding war in baseball right now is not over Juan Soto, but a baseball card.

On Nov. 10, Topps announced the release of a one-of-one Paul Skenes rookie debut autographed card featuring a patch worn during his first pro game. The card of the Pittsburgh Pirates phenom is available in one pack of 2024 Topps Chrome Updates.

Yet on Friday morning, the Pirates themselves sent the baseball world into a tizzy with a Willy Wonka-like offer to the lucky person who pulls the card.

In a detailed tweet, the Pirates said that in exchange for the item, they would provide two season tickets behind home plate for the next 30 years, a softball game for 30 people at PNC Park (the Pirates’ home) where players will be coached by team alumni, and a one-of-a-kind spring training package.

The spring training experience will include a meet-and-greet with Skenes, two of his autographed jerseys, a chance to take batting practice and warmups with the team and other one-of-a-kind experiences at LECOM Park, the Pirates’ spring training stadium in Bradenton, Fla.

Advertisement

But Ken Goldin, the founder of collectibles firm Goldin Auctions, upped the ante with an alternative offer of cold hard cash. In his quote tweet of the Pirates’ post, he said “Before anyone takes this or any deal, email me directly. @GoldinCo will sell the card for you, put your kids thru college and you can use the leftover money to buy entry into a meet and greet with Skenes if you want….”

With a nod to the Shohei Ohtani, the star of Netflix’s King of Collectibles: The Goldin Touch said a deal with his firm paid off handsomely for the person who ended up with the 50/50 home run ball hit by the Los Angeles Dodgers’ star. “Just ask the last guy who turned down an offer from an MLB team how that worked out for him (Shohei 50 HR ball).”

On Oct. 23, the historic ball sold for $4.4 million after a late bidding rally ran the nearly month-long auction past midnight on the final day. The buyer was a Taiwanese investment firm, UC Capital Ltd., which plans to publicly display the ball for fans to see.

As if those bids weren’t enough, the holder of the card could also join Skenes’ girlfriend, social media star and LSU gymnast Olivia “Livvy” Dunne in her suite at PNC Park.

And if the card owner is kind enough to let him “LOOK at it for a SECOND,” late night talk show host and avowed Pirates fan Seth Meyers is offering four VIP tickets to check out Late Night with Seth Meyers.

Advertisement

Skenes, whom the Pirates drafted No. 1 overall out of LSU in 2023, had one of the best rookie campaigns in recent memory. The 22-year-old right-hander was named an NL Cy Young finalist, an NL Rookie of the Year finalist, an All-MLB First Team selection and the starting pitcher for the NL at this summer’s All-Star Game. In 23 starts, Skenes posted an 11-3 record with a 1.96 ERA, 170 strikeouts and a 0.95 WHIP.

Continue Reading

World

Fire kills at least 10 people in Spanish retirement home

Published

on

Fire kills at least 10 people in Spanish retirement home

At least 10 people were killed after a fire broke out in a retirement home in the northern Spanish town of Villafranca de Ebro early Friday, authorities said.

The blaze started in one of the rooms, Fernando Beltran, the national government’s top official in Aragon region, told reporters.

SPAIN SEARCHES FOR BODIES AFTER UNPRECEDENTED FLOODING CLAIMS AT LEAST 158 LIVES

All the victims were elderly people living in the Jardines de Villafranca residence, a care home for people with mental health issues, Aragon regional president Jorge Azcon told reporters.

One person was in a critical condition and another was in a serious condition, Azcon said.

Advertisement

Members of the criminalistics unit of the Spanish civil guard work at the nursing home that caught fire early on Friday, killing several people, according to the regional government of Aragon, in Villafranca de Ebro, Spain, Friday.  (Reuters/Pablo Ibanez)

The fire started at around 5 a.m. local time, and it took about two hours for firefighters to extinguish it, a spokesperson for the regional government said.

Firefighter chief Eduardo Sanchez told reporters the fire was contained to the room where it started and that the fatalities were caused by smoke inhalation.

“The doors were closed, they prevented the fire from spreading. The tragedy could have been worse,” Azcon said after visiting the building.

Advertisement

Several residents were treated, mainly for smoke inhalation, mayor Volga Ramirez said.

Authorities have opened an investigation into the cause of the fire.

Azcon said the priority now was to transfer the residents who were not injured in the blaze to another care home in nearby Huesca.

Continue Reading

World

Israel ramps up attacks on Lebanon as officials study US ceasefire plan

Published

on

Israel ramps up attacks on Lebanon as officials study US ceasefire plan

The Israeli military has carried out air raids in the suburbs of Beirut for the fourth consecutive day as Lebanese officials studied a US plan for a ceasefire.

Israeli air strikes flattened five buildings in the Lebanese capital’s southern suburbs on Friday. One of them was located near one of Beirut’s busiest traffic junctions, Tayouneh.

The Israeli military said its fighter jets attacked munitions warehouses, a headquarters and other infrastructure used by the Lebanese group Hezbollah.

Reporting from Beirut, Al Jazeera’s Zeina Khodr said the Israeli military had issued two forced evacuation orders before the attacks.

“[Residents] are forced to leave their homes only to watch the strikes come in and wonder whether or not they have a home to return to. There are no casualties because many people left the area and because of these evacuation orders,” she said.

Advertisement

“Human rights groups have criticised these forced evacuation orders, saying most of the time they don’t give people enough time to leave,” Khodr added.

Meanwhile, Iran-aligned Hezbollah said it fired rockets at a group of Israeli soldiers in Misgav Am and the Yiftah barracks in northern Israel.

The Lebanese armed group said in a statement on Telegram it also attacked another group of Israeli soldiers with rockets on the eastern outskirts of the Lebanese town of Markaba.

Hezbollah also said it attacked Israeli soldiers in northern Israel’s Sasa and Dishon.

Israel’s military escalated its attacks on Lebanon in late September after almost a year of cross-border hostilities with the Lebanese armed group Hezbollah in parallel with the Gaza war. It says it aims to secure the return home of tens of thousands of Israelis, forced to evacuate from northern Israel under Hezbollah fire.

Advertisement

Israel’s attacks on Lebanon have forced more than one million Lebanese to flee their homes, igniting a humanitarian crisis.

It has dealt Hezbollah serious blows, killing its leader Hassan Nasrallah and other commanders. Hezbollah has kept up rocket attacks into Israel and its fighters have been battling Israeli troops in the south.

Ceasefire talks

Diplomacy attempting to reach a ceasefire has shown tentative signs of progress this week.

The Reuters news agency reported on Thursday that the US ambassador to Lebanon had presented a draft ceasefire proposal to Lebanon’s parliament speaker Nabih Berri, citing two senior political sources. Berri is endorsed by Hezbollah to negotiate and met the senior Iranian official Ali Larijani on Friday. The AFP news agency reported that senior Lebanese officials are reviewing the US proposal.

A senior Iranian official said on Friday that Iran would back any decision made by Lebanon in truce talks, signalling Tehran wants to see an end to the conflict.

Advertisement

Asked at a news conference whether he had come to Beirut to undermine the US truce plan, Larijani said, “We are not looking to sabotage anything. We are after a solution to the problems.”

“We support in all circumstances the Lebanese government. Those who are disrupting are Netanyahu and his people,” Larijani added, referring to Israeli Prime Minister Benjamin Netanyahu.

World powers have said a Lebanon ceasefire must be based on UN Security Council Resolution 1701, which ended a previous 2006 war between Hezbollah and Israel. Its terms require Hezbollah to move weapons and fighters north of the Litani River, which runs some 20km (30 miles) north of the border.

Israel has demanded the freedom to attack, should Hezbollah violate any agreement – a demand that Lebanon has rejected.

In a meeting with Larijani, Lebanon’s caretaker Prime Minister Najib Mikati urged support for Lebanon’s position on implementing 1701 and called this a priority, along with halting the “Israeli aggression”, a statement from his office said.

Advertisement

Larijani stressed “that Iran supports any decision taken by the government, especially resolution 1701”, the statement said.

Meanwhile, on Thursday, Eli Cohen, Israel’s energy minister and a member of its security cabinet, told Reuters that prospects for a ceasefire were the most promising since the conflict began.

At least 3,386 people have been killed and 14,417 wounded in Israeli attacks on Lebanon since October 2023.

Continue Reading
Advertisement

Trending