Why the Legal Playing Field Was Never Even — And How Litigation Finance Is Changing That

Matt Dolman: Welcome to another episode of the David and Goliath podcast. Here with my partner in crime, Stan G. We have with us an esteemed guest today — Mr. Casey Gard. Casey comes over from the private equity world. He was a heavy hitter in finance, made his way into legal finance, and we’ve built up a pretty solid long-term relationship over the last three or four years. We’re looking at a lot of turmoil in the legal finance industry right now — how the bar looks at it, how tort reform opponents look at it. Casey, has this become a less attractive asset class, or are you still as excited as you were? Give the audience an overview of who you are and what you do.

Casey Gard: I’ve been in the finance arena for over 30 years — investment manager for 25-plus, managing hedge funds, private equity, and various other vehicles. I entered litigation finance through our family office about seven or eight years ago. Are we excited? Absolutely. The foundation of our view hasn’t changed. The U.S. personal injury litigation market represents hundreds of billions in annual known settlements. The capital actually deployed into that market? A few billion. Large addressable market, severely underpenetrated — that’s an environment I want to be part of.

In terms of what’s changed — there’s been a tremendous influx of global liquidity across asset classes, and this industry has seen its share of that. More capital means more participants, and not all of them are good actors. But that’s true of every industry. What it reminds us is to stick to our disciplines — work with the highest-quality law firms and avoid the minefields. Regulation and scrutiny, frankly, can be good. It cleans up an industry and gets it back on track.

Matt Dolman: I hear you on regulation — but let’s talk about what happened with DTLA in Los Angeles. Fraudulent sex abuse claims that have tarnished an otherwise landmark $4 billion settlement for survivors. And now in the Uber rideshare sexual assault cases, they’re going after the funders. Why are they always targeting private equity coming into law? What scares them?

Casey Gard: The DTLA situation is unfortunate — a clear example of bad actors getting involved. But the consistent theme I hear from high-quality firms like Dolman Law Group is that client outcomes and justice come first. That’s not just talk — it’s what separates the best from the rest. Over time, that rises to the surface. The best firms aren’t focused on settling fast to collect a fee. They’re focused on doing right by the client. When an industry is led by people like that, it overtakes the bad actors. Private capital, deployed with discipline alongside quality firms, actually accelerates the cleanup — not the other way around.

Stan Gipe: I take a different view on whether litigation finance is even “new.” When I represent a client, if I reach outside that relationship for any funding to bring that claim forward — that’s litigation finance. Now look at the defense. Who’s paying their costs? Not the defendant. Not the defense attorney. It’s a multibillion-dollar insurance company that has been funding litigation expenses on the defense side forever — cost no object. The moment we get some capital on the plaintiff side to level the playing field, suddenly it’s unfair?

Casey Gard: Completely agree. And I think we all know who’s on the other side — the insurance industry and its lobbyists. Very powerful, very organized, very good at controlling the message. The private capital coming into litigation finance isn’t imbalancing the playing field. It’s balancing it. And we need to do a better job getting that message out. This past summer, there was a proposed excise tax on the industry inserted into appropriations just days before the July 4th deadline. The industry coalesced and pushed back — but that kind of coordinated effort needs to be ongoing. The message is simple: we provide access to the courts. We help people get a fair shot at justice.

Matt Dolman: And when they imply that funders are making the legal decisions — let’s address that directly.

Stan Gipe: Casey has never once told us what to do on a case. Not in discovery. Not on trial strategy. Not on whether to settle. He checks in, asks how things are going, and reports back to his investors. That’s it. And you know what? The defense funders — the insurance companies — are absolutely making legal decisions on that side. Nobody asks them about it. Nobody questions it. Bad actors exist everywhere — bad cops, bad firefighters, bad people in finance. Welcome to DTLA. But the defense has never been held to that same ethics standard. Not once.

Casey Gard: And it’s not always bad actors — sometimes it’s desperate ones. Firms without access to the capital they need to bring a legitimate case forward. That problem doesn’t exist on the defense side. As for the argument that litigation funding creates fraudulent claims — it doesn’t create a single claim. It raises awareness of existing ones. And here’s the reality: if we fund illegitimate cases, we lose money. Nobody benefits from a losing case. The industry is largely self-policing for that reason alone.

Every industry in this country operates with a capital structure. Technology, accounting, medical practices, defense law firms — they all access private capital. The question shouldn’t be why are plaintiff firms receiving litigation funding. It should be: why wouldn’t they? And since the global financial crisis, Dodd-Frank and related banking reforms have actually restricted the amount banks can lend against contingency-valued assets — which is exactly what plaintiff firm balance sheets are built on. So plaintiff firms have less access to traditional banking capital than they did before 2008. That’s not a level playing field. That’s a structural disadvantage.

Matt Dolman: And on the question of whether funders control strategy —

Casey Gard: We’re SEC-regulated. Compliance isn’t new to us. But beyond the rules — why would I want to dictate strategy to a firm I’ve invested in precisely because they’re the best at what they do? I want to be the least-informed person in the room when it comes to litigation. We have lawyers, case managers, and paralegals on our team for that reason. The law firms we partner with are best of breed. Our job is capital allocation and risk management. Their job is winning cases. We stay in our lane — not just because we’re required to, but because it makes sense.

Matt Dolman: Casey, closing thoughts — and I have to ask: do the Knicks have a shot? Does St. John’s?

Casey Gard: The East has reemerged as a real competitor this year. The Knicks are in the mix — bench depth is the question mark, but they have a shot. St. John’s — I’ll be transparent, the coach is a longtime close friend. But beyond that, he’s best of breed in his profession. They’re peaking at the right time heading into the tournament. I think they make it to the Elite Eight.

And before we wrap — I want to acknowledge something. Over the past few years, watching the evolution of Dolman Law Group has been remarkable. A firm that has grown into a true national presence — on leadership committees for multiple MDLs, at the senior level in major sex abuse and sexual exploitation cases, all while maintaining a deep personal injury docket. That growth, the quality of it — it’s been genuinely impressive to watch. And even with everything they’ve built, it still feels like early innings for them. That’s what makes it exciting.

Matt Dolman: Casey, we love you. You’ve done more for this firm than I could properly put into words. To wrap it up on my end — the challenge we face as plaintiff lawyers is a political one. The industry is polarized. Our lobbying arm does incredible work, but the moment trial lawyers walk in the door, Republicans shut down. They see us as creatures of the Democratic Party. That perception isn’t going away anytime soon — and it’s something we’ll dig into further on the next episode. Thank you, Casey. Thank you, Stan. This has been another episode of the David and Goliath podcast. Have a blessed day.