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Tag: “personal injury” “public policy” “assignment of personal injury claims” champerty “secondary market”

Competing Opinions Favor Regulation Of Lawsuit Funding, Differ On Interest Rate Cap

Competing Opinions Favor Regulation Of Lawsuit Funding, Differ On Interest Rate Cap

Two separate opinion pieces in the Albany, New York, Times-Union newspaper take up the issue of regulation of litigation funding.  As to regulation generally, they are in agreement that new governance of the business is called for.  But the commentators differ on a key point: one says that an interest rate cap in such deals is necessary, while the other says it would hurt individual claimants. The two pieces are as follows: A November 15, 2018 op-ed, “New York Must…

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Litigation Funding Agreement Unenforceable, Says Bankruptcy Court

Litigation Funding Agreement Unenforceable, Says Bankruptcy Court

A federal bankruptcy court in Connecticut held that a personal injury claimant’s obligation to a litigation funding company was a debt subject to discharge in bankruptcy, and that any purported lien or assignment rights held by the company would be “invalid and unenforceable”. The case is captioned In re Knight, Chapter 11 Case No. 11-23428 and Adv. Pro. No. 12-02013 ECF (Bankr. D. Conn. Mar. 31, 2015), and involved some “highly unusual and extraordinary circumstances” that included a debtor who…

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Missouri, Public Policy, and Assignment of Personal Injury Claims

Missouri, Public Policy, and Assignment of Personal Injury Claims

An insurer that covers an individual's medical expenses arising from an accident that caused personal injuries may request that the individual pay back those medical expenses when the individual reaches a settlement with the alleged tortfeasor. If that request is governed by Missouri law, however, public policy will bar such a request. That was the opinion of a 2010 Missouri Court of Appeals opinion, Scroggins v. Red Lobster, No. SD 30214 (Mo. Ct. App. Aug. 6, 2010).  In that opinion, the court…

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