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Tag: “public policy”

Court: Litigation Funder Cannot Re-Litigate Enforceability of Agreements

Court: Litigation Funder Cannot Re-Litigate Enforceability of Agreements

Because a litigation funding company lost on the issue of enforceability of its agreements in a previous legal action against an individual, the company is precluded from re-litigating the issue in a later lawsuit where the company attempted to enforce the same agreements against the individual’s attorney, That was the ruling in Prospect Funding Holdings, LLC v. Breen, Civ. No. 2:17-cv-3328-KM-MAH, 2018 U.S. Dist. LEXIS 19373 (D.N.J. Feb. 5, 2018),Plaintiff Prospect Funding Holdings, LLC (“Prospect”).  The “agreements have already been…

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Magistrate Recommends Letting Insurer Proceed with Lawsuit Seeking Invalidation of Insurance Policy For Lack of Insurable Interest

Magistrate Recommends Letting Insurer Proceed with Lawsuit Seeking Invalidation of Insurance Policy For Lack of Insurable Interest

A federal magistrate judge this week recommended that the United States District Court for the District of Delaware deny a motion to dismiss a complaint brought by an insurance company seeking to invalidate an insurance policy for lack of an insurable interest. In PHL Variable Ins. Co. v. Hudson Valley EPL, LLC, Civil Action No. 13-1562-SLR-SRF (D. Del. Sept. 16, 2014), U.S. Magistrate Judge Sherry Fallon described the case as one in which PHL Variable Insurance Company sought a declaration…

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Court Provides ‘Brief Overview Of The Law Related To STOLI Schemes’

Court Provides ‘Brief Overview Of The Law Related To STOLI Schemes’

A federal court in Illinois last month had before it a motion to dismiss in a case where the key question was whether the insurance policy was a stranger-originated life insurance, or STOLI, policy. Before turning to the merits of the defendant’s motion to dismiss on standing grounds and on the basis of public policy, the court in Lincolnway Community Bank v. Allianz Life Ins. Co. of N. Am., No. 11-CV-5907, 2013 U.S. Dist. LEXIS 132536 (N.D. Ill. Sept. 17,…

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