The ongoing legal battle between Arigna Technology Ltd. and Longford Capital Fund III LP over a substantial $100 million settlement from a patent-enforcement campaign has reached a pivotal juncture. Earlier this week, a federal judge put the case on hold to allow for arbitration, in accordance with a provision in Arigna’s agreement with its law firm, Susman Godfrey LLP. This decision, handed down by Judge Gregory B. Williams in the US District Court for the District of Delaware, allows Longford—a Chicago-based private investment fund—to invoke the arbitration clause to resolve specific jurisdictional issues.
The crux of the dispute is the distribution of the settlement funds, with Longford seeking $32 million of the payout secured by Susman Godfrey for Arigna. The litigation funder argues that a significant portion of the settlement rightfully belongs to it under the terms of the invested funds. Judge Williams’ opinion outlines that Longford’s arbitration request is valid, given the existing agreements among Arigna, Susman Godfrey, and Longford.
Judge Williams’ ruling halts the federal case in the interim, directing both parties to arbitration to resolve which matters fall within its purview. The decision underscores the increasing prevalence of arbitration provisions in complex litigation funding agreements and their enforceability in federal court. Legal professionals will undoubtedly keep a close watch on the arbitration proceedings for insights on future litigation funding disputes.
For a detailed overview of the latest developments in this case, please visit the full article on Bloomberg Law.