Burford's 2016 Judgment Enforcement Survey focuses on the extent of the enforcement problem, the legal processes and investigatory methods available and how litigation finance can be used to fund enforcement.

1. 2016 Judgment
Enforcement
Survey
Understanding and solving the enforcement challenge
BURFORD BAROMETER

2. Introduction
Burford Capital is committed to providing
intelligence and insight to help in-­house and
private practice lawyers achieve better
outcomes.
Our latest Burford Barometer, produced with the
Lawyer Research Service, a division of The
Lawyer, looks at a problem cumulatively worth
billions in lost value to companies worldwide:
unenforced litigation and arbitration judgments.
The 2016 Judgment Enforcement Survey
focuses on the extent of the enforcement
problem, the legal processes and investigatory
methods available and how litigation finance can
be used to fund enforcement.
The research identifies recoverability as a major
challenge.
Indeed, 58 percent of in-­house lawyers surveyed
in April 2016 by The Lawyer Research Service
for this study said that their corporations have
not been paid the full face value of judgments
secured in the last five years. Of this number, 38
percent have been able to secure just 70 percent
or less of their judgment—and 19 percent were
only able to secure 50 percent or less.
Put simply, unenforced judgments are a problem
affecting the majority of corporations—a problem
worth millions to individual businesses and
billions of cumulative corporate value. As a
result, lawyers and in-­house counsel must do
better at understanding what to do about it.
It is in that spirit that we commissioned the 2016
Judgment Enforcement Survey.
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Overcoming the “legal paper” challenge
© Burford Capital 2016 – All rights reserved

3. The challenge
Judgment enforcement is a significant problem
for corporates and the firms who work with them.
Being left with little more than a piece of legal
paper after a lengthy courtroom battle is an
unpleasant outcome of litigation and arbitration.
It means that another fight—to secure the
judgment—still lies ahead.
And lacking the right partner, this fight can be
just as expensive and time-­consuming as the
case itself.
The following research explores the extent of the
problem and awareness of the potential
solutions.
3
Enforcing judgments is not a forgone conclusion
37%of corporates
have unenforced
judgments amounting to
over $10 million
© Burford Capital 2016 – All rights reserved

4. 2016 Judgment Enforcement Survey
1. Enforcing judgments is not a foregone
conclusion
2. Most clients have experience with
unenforced judgments
3. Unenforced judgments are a significant
unrealized corporate asset
4. Enforcement options are available, including
financing
5. Understanding of the options available
remains a significant barrier
4 © Burford Capital 2016 – All rights reserved
Key findings
of corporates have not been
paid the full face value of a
judgment or arbitration award
(last five years)
58%

5. Enforcement challenges are widespread
61
39
93
7
73
28
92
8
Agree Disagree Agree Disagree
Enforcing and recovering judgments/awards is a matter of procedure It is not inevitable that the full value of judgments/awards is recovered
Private practice Corporates
5 © Burford Capital 2016 – All rights reserved

6. Enforcement impacts conversations
between firms and clients
60%
33%
6% 1%
Always Most of the Time Rarely Never
How often do you discuss
judgment/award enforcement and
recovery with clients at the outset of
litigation or arbitration?
6 © Burford Capital 2016 – All rights reserved
89%
11%
Yes No
Have any of your clients ever not
pursued a claim due to concerns
regarding enforcement?

7. 7 © Burford Capital 2016 – All rights reserved
of in-house executives say ease
and likelihood of recoverability
is the most important factor
influencing whether to pursue
litigation/arbitration
74%
“Enforceability must
be the first question
when thinking about
whether to pursue a
fraud case.”
Bernard O’Sullivan,
Partner Olswang

8. Enforcementinfluencesdecision-making
8 © Burford Capital 2016 – All rights reserved
12%
76%
11%
1%
74%
22%
4% 0%
Most important factor Very important factor Not an important factor but is
considered
Never factored into our decision
making process
Impact of ease and likelihood of recoverability on decision to pursue claim
Private practice Corporates

9. Most clients have not been paid the
full value of an award
9 © Burford Capital 2016 – All rights reserved
86%
14%
58%
42%
Yes No
In the last 5 years, have you/your clients ever not been paid the full face
value of a successful litigation or arbitration judgment or award?
Private practice Corporates

10. Unenforced judgments are a significant
unrealized corporate asset
67%
13%
6%
14%
63%
25%
6% 6%
Under $10 million $10-­$30 million $30-­$50 million Over $50 million
What is the potential value of your / your clients’
unenforced judgments in the last 5 years?
Private practice Corporates
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11. Judgments often go unenforced
because money is hidden offshore
11 © Burford Capital 2016 – All rights reserved
62%
8%
30%
Yes No -­ all of our judgments/awards have been
satisfied
No -­ some of our judgments/awards have not
been satisfied but money being hidden was not
the primary cause
Have you ever had a judgment/award that was unenforced because
money was hidden in offshore jurisdictions?

12. The economics of enforcement
play a role
12 © Burford Capital 2016 – All rights reserved
45%
33%
22%
61%
22%
17%
Economics of settlement more favourable Legal barriers Lack of resources to pursue
Typically, what was the main reason the full face value of
the successful award was not paid?
Private practice Corporates

13. Judgment enforcement solutions
• Asset tracing and investigations
– Identify assets that are commercially pursuable
and strategically important
– Prove legal and beneficial ownership
– Overcome other bars to enforcement
• Understanding your opponent
– What is their commercial tipping point
– Understanding jurisdictional and political context
• Case management
– Strategic and tactical oversight and direction
– Select experienced local counsel
– Effect efficient and timely settlement or recovery
13 © Burford Capital 2016 – All rights reserved
Partners like Burford are able to provide a range of enforcement services
half of private practice lawyers
have clients that have used asset
tracing services
1/2

14. Judgment enforcement solutions
• Burford is able to offer a range of financing
options for judgment enforcement and asset
tracing services—enabling corporates to move
cost and risk off their balance sheets if
desirable
• Range of options depending upon needs of
clients:
1. Fixed or capped fee basis where our expertise is
sought, not our capital
2. Fully contingent arrangements where all costs are
covered until recovery is made
3. Purchase of judgment or award
14 © Burford Capital 2016 – All rights reserved
Corporates are less aware of the financingoptions available for enforcement
of corporates are unaware
that they may finance asset
tracing and enforcement
services
1/4

15. Private practice firms are aware
of enforcement options
59%
22%
11%
32%
65%
69%
9%
13%
20%
Judgment enforcement fee-­based advisory
services (including asset tracing, proof of
asset/vehicle ownership, etc.)
Contingent arrangements (where judgment
enforcement costs are covered and no fees are
paid unless and until cash proceeds are realized)
The sale of unsatisfied judgments and awards
What type of judgment enforcement services have
your clients used in the past year?
At least one client None (but aware of service) None (not aware of service)
15 © Burford Capital 2016 – All rights reserved

16. Clients are less aware of
enforcement options
31%
14%
8%
50%
60%
58%
19%
26%
35%
Judgment enforcement fee-­based advisory
services (including asset tracing, proof of
asset/vehicle ownership, etc.)
Contingent arrangements (where judgment
enforcement costs are covered and no fees are
paid unless and until cash proceeds are realized)
The sale of unsatisfied judgments and awards
What type of judgment enforcement services have
you used in the past three years?
At least one client None (but aware of service) None (not aware of service)
16 © Burford Capital 2016 – All rights reserved

17. Litigation funding for enforcement
• The funder will cover the costs of enforcement, including legal and other costs in return for a
proportion of damages recovered
• Importantly, the claimant does not pay any fees until cash proceeds are released
• This type of funding is still relatively new: only 11 percent of surveyed lawyers have clients that
have secured funding at this stage
• Litigation funding for enforcement is becoming more popular as knowledge and understanding of
financing grows
17 © Burford Capital 2016 – All rights reserved
How does it work?

18. Conclusion
• Corporates are ceding staggering sums to unenforced judgments. According to a third of private
practice lawyers, the value of their clients’ unenforced judgments in the last five years exceeds $10
million. Some 14 percent said this figure exceeds $50 million.
• The top two barriers to judgment enforcement and litigation finance today are 1) lack of awareness
and understanding and 2) ignorance of available financing options.
• The research confirms conditions are ripe for both private-­practice lawyers and in-­house counsel to
embrace judgment enforcement. Those who do will demonstrate their ingenuity by helping their
clients and their companies to restrain costs and spread risk. The findings of the survey
demonstrate an extraordinary opportunity to use litigation finance in ways that are extremely
beneficial to their businesses.
18 © Burford Capital 2016 – All rights reserved
2016 Judgment Enforcement Survey

19. About the research
In April 2016, online surveys were distributed
to over 200 private practice litigation and
arbitration lawyers, in-­house counsel and
corporate C-­level executives. The majority (61
percent) are private practice lawyers. The
remainder are in-­house counsel (32 percent)
and C-­level Executives (7 percent). The
majority (70 percent) of respondents are
located in the UK. The remainder are located
in North America, continental Europe and
Asia. The survey was conducted in April 2016.
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2016 Judgment Enforcement Survey
© Burford Capital 2016 – All rights reserved

20. About Burford Capital
Burford Capital is a leading global finance firm
focused on law. Burford’s businesses include
litigation finance, insurance and risk transfer,
law firm lending, corporate intelligence and
judgment enforcement, and a wide range of
investment activities. Burford’s equity and debt
securities are publicly traded on the London
Stock Exchange. We work with lawyers and
clients around the world from our principal
offices in New York and London.
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Leading global finance firm focused on law
© Burford Capital 2016 – All rights reserved

21. 21
Contact
Liz Bigham
lbigham@burfordcapital.com
+1 212 235 6820
Click here to access the full Judgment
Enforcement Survey, and here to access
the prior surveys.
© Burford Capital 2016 – All rights reserved