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Tag: usury

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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Litigation Funding Business Is ‘Littered With Ethical And Philosophical Quagmires’ Says U.S. News & World Report Article

Litigation Funding Business Is ‘Littered With Ethical And Philosophical Quagmires’ Says U.S. News & World Report Article

A reporter for U.S. News and World Report this week took a look at the “lightly regulated” business of litigation financing, and came away with some interesting comments about the “perverse”business. In a January 22, 2018 article headlined “How Wall Street Invests in Justice”, investing reporter John Divine said that “Litigation financing is an incredibly innovative and interesting creation of high finance, but it’s littered with ethical and philosophical quagmires.” Among his other comments were the following: The “obscure field…

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Forbes Reports That Litigation Finance Company Faces Lawsuit By Former Customers Over Allegations of Too-High Interest Rates

Forbes Reports That Litigation Finance Company Faces Lawsuit By Former Customers Over Allegations of Too-High Interest Rates

  Forbes this month reports that a litigation finance company has been sued by former customers, who have alleged that the company charged usurious interest rates.  Says reported John O’Brien in the May 9 article, Customers Sue Legal Finance Company, Allege Interest Rates Over 100%: Six individuals who did business with Oasis [Legal Finance] are suing the company in Georgia, asking for a federal judge to declare the interest rates charged by the company in violation of the lending laws of…

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Champerty Still Valid Defense in Kentucky, So Litigation Funding Agreements Are Void, Says Court

Champerty Still Valid Defense in Kentucky, So Litigation Funding Agreements Are Void, Says Court

A series of litigation funding agreements were champertous and therefore void under Kentucky law, a federal court has ruled. In Boling v. Prospect Funding Holdings, Civil Action No. 1:14-CV-0008-1-00081-GNS-HBB, 2017 U.S. Dist. LEXIS 48098 (W.D. Ky. Mar. 30, 2017), the federal district court reviewed the claims of an individual who had entered into a series of litigation funding agreements and later challenged the agreements, arguing that they were unenforceable due to Kentucky’s public policy against champerty and prohibition against usury….

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New Jersey Legislation Would Cap Interest Rates For Litigation Funding

New Jersey Legislation Would Cap Interest Rates For Litigation Funding

New Jersey’s legislature is considering a bill that would regulate the litigation funding business, and impose a 30 percent interest rate cap on litigation funding transactions, according to a New Jersey Law Journal article. According to the article, “Interest Rate Cap At Issue in NJ Litigation Funding Bill,”the bill — aside from creating a registration framework and imposing monetary fines for violations — seeks to limit interest rates to 30 percent for individual loans” which is “the same maximum rate…

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Law Review Article Sheds Light On Usury and Catholic Legal Tradition

Law Review Article Sheds Light On Usury and Catholic Legal Tradition

Usury and unconscionability are two legal concepts that sometimes come up in the context of secondary insurance market matters, as revealed, for example, by this post. A law review article published in the past year by the Brigham Young University Journal of Public Law directly addresses the usury, as well as questions of unconscionability, as reflected by Catholic legal tradition.  The article, Is Greed Good? A Catholic Perspective on Modern Usury (27 BYU J. Pub. L. 185, 2012), was authored by…

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Something Thought-Provoking for the Holiday Season

Something Thought-Provoking for the Holiday Season

Here is something a little different, prompted by the fact that we are in the midst of a string of holiday celebrations, and because today is the eve of one of the holiest days in the Christian calendar.  In doing some research on usury, this quote came up in a series of searches: "There is one bit of advice given to us by the ancient heathen Greeks, and by the Jews in the Old Testament, and by the great Christian teachers of…

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Usury from the 30,000-Foot-View

Usury from the 30,000-Foot-View

On occasion, secondary insurance market matters involve some question relating to usury, and in particular whether a secondary market transaction is usurious. Panning back to take the 30,000-foot-viewof usury is UCLA School of Law Professor Stephen Bainbridge, who writes here about whether usury is a "core feature" of modern society – and further on various perspectives on usury's place in historical and religious traditions.