Rob’s mother had died when he was young. His father remarried Stella some years later.

Stella was a single mother with two sons of her own. Rob got on well with his two step-brothers but Stella never seemed to take to him and treated him much less favourably than them. Rob was a level-headed kid and just got on with life. His happy-go-lucky attitude was a trait he shared with his dad.

His dad was a successful businessman and was often interstate or overseas. He died young and Stella soon sent Rob away to boarding school. She provided him with a meagre allowance compared to his step-brothers but Rob didn’t mind.

His father’s brother, Stan, was a farmer and Rob often spent school holidays working on the farm and generally enjoying life with his cousins. Stella was happy not to have him home. Uncle Stan paid him fairly for the work he did and Rob had spare money on those school holidays, but having spare money to spend did not change him at all.  

Rob was good at sport and academically as well. He got good marks in his final year at school and took the next year off working on the farm. Towards the end of the year, he decided that he wanted to try a university Commerce course but Stella told him there was “no money” for that and he should get a job because she could no longer afford to give him any money.

Uncle Stan was really surprised when Rob told him this. His brother had been a wealthy man and Stella’s story did not add up. He had his accountant do some digging. It turned out that the shares in the companies that Rob’s dad had owned were now in Stella’s name and at least two of his three business interests had been sold. One company had extensive real estate holdings.

Stan asked Stella to explain his late brother’s financial affairs but Stella told him to mind his own business. His accountant guessed that Rob’s father had organised and held his wealth in a number of family and property trusts. Stan had his lawyer send Stella a couple of formal letters requesting information, but all that came back was a letter from a huge, well-known and expensive legal firm telling Stan (this time in legal language) to mind his own business.

Stan’s lawyer suggested he look for a lawyer who specialised in commercial and trust litigation but Stan soon found that the money he would need to employ such a lawyer or legal firm was beyond his financial resources. It was then that his accountant suggested that they look for a Litigation Lender.

If the fictitious Stan came to HRF on Rob’s behalf, there would be no instant approval but sufficient interest for HRF to spend money on expert lawyers to carry out more extensive investigations and perhaps conduct some preliminary litigation to gain hard information – tax returns, company and trust records and the like.

There are no guarantees in litigation but if Stella had distributed trust money to herself and her sons while excluding Rob, there would be cause to investigate more thoroughly, challenge the distributions in Court and even have an independent person appointed to manage and distribute the trust capital and income fairly.

This type of litigation has become more frequent in Australia in recent years.

This is a sample case we have supplied to our litigation funding partners and features on one of their websites

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