Sharing Risk with Clients
Dave Kerstein: All of our transactions are structured differently, but we work off of what we call our 50/50 model, which involves sharing risk between the lawyers, the client, and Bentham. Utilizing that 50/50 model, lawyers or firms can actually increase, or enhance their revenue. Not only by winning new clients, and keeping clients that they have, but by taking measured risk in some of their cases and experiencing some of the upside in those cases. We'll ask the law firm to come up with a budget for the case. Bentham we'll commit to fund 50% of that budget. The law firm would invest 50% of it's time. In that ideal arrangement, Bentham would then take a 20% return only if the case is successful from the proceeds of the case if there's a settlement or a judgement. The law firm would also have a 20% interest in the litigation proceeds if the case is successful on top of the 50% of their fees that they were incurring on a regular basis.
Jim Batson: Because that's fair. We think that's fair, and most people find it fair, and it's sustainable.
Dave Kerstein: They've been able to get an amazing firm on basically a full business contingency, where they otherwise would not have been able to do so.
Jim Batson: Simplicity, you can understand our deals. Fairness, our clients wind up with at least half and historically Bentham's clients have wound up with over 60% of the returns. And transparency, a publicly traded company with it's financials, and it's case history publicly available.