Schulte partner Ted Keyes quoted in Law360 on Judgment Preservation Insurance 

Schulte Roth & Zabel partner Ted Keyes discussed judgment preservation insurance (JPI) transactions with Law360 for the article "How Big IP Judgment Winners Are Insuring 'Nuclear Verdicts.'" Nuclear verdicts refer to large monetary awards secured by plaintiffs who often have to wait out a lengthy appellate process before gaining access to the funds or finding out how much of the award will remain intact. JPI policies allow parties who secure large monetary awards to pay a premium to guarantee recovery of a portion of the award.  

Ted stated "Most but not all of the JPI transactions that we have been involved with have involved IP cases and, more specifically, patent litigation." He continued, "These deals have all involved judgments in excess of $10 million and some have involved judgments in the hundreds of millions." 

JPI policyholders can also use their policies as loan collateral, getting partial access to their money for business investments or to aid with appeal costs. Appeals in patent cases can last as long as 10 years. "It can take many years for a claimant to get through the appeals process and actually collect on a judgment," Ted said. "The ability to use a JPI policy as collateral for a loan gives a claimant the option to monetize a portion of the judgment in the near term." 

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