Omni Bridgeway (Fund 5) Cayman Invt. Ltd v Bugsby Property LLC & Anor [2023] EWHC 2755

Bugsby applied for fortification of cross-undertakings in damages which had been provided by the two funders who had obtained injunctive relief in respect of ongoing arbitration proceedings. The Court found that there was not a good arguable case that Bugsby would actually suffer loss. The Court also found that there was no arguable case that the funders would fail to honour the undertakings that had been provided given the importance of their reputations in the market. This application is an example of the growing trend of bringing applications against funders but must be seen to have been a highly optimistic attempt to cause difficulties for them.