Feb 5, 2018

The Georgia Supreme Court Will Look at Litigation Funding

Court Ruling

A previous post in this blog reported that the Georgia Court of Appeals decided in Cherokee Funding, LLC v. Ruth, Case No. A17A0132 (decided June 27, 2017), that a litigation funding agreement was not subject to the Georgia Industrial Loan Act or the Payday Lending Act. That decision removed a potential barrier to litigation funding.  It has become a more common means for plaintiffs (and sometimes defendants) to finance the costs of litigation. Today, the Georgia Supreme Court granted certiorari in that case and posed to the parties the question: “Are the litigation funding agreements at issue in this case subject… Read more

Jul 6, 2017

The Georgia Court of Appeals Looks at Litigation Funding

Gavel and Money

In recent years, an industry has developed in which businesses advance monies to plaintiffs with pending lawsuits in exchange for a share of the recovery. The business only recovers money if the plaintiff makes a recovery. If the lawsuit fails, the business making the advance receives nothing. In the Cherokee Funding, LLC v. Ruth, Case No. A17A0132 (decided June 27, 2017), the Georgia Court of Appeals looked at how those businesses fit into Georgia’s statutory schemes regulating certain lending activities. The Georgia Court of Appeals concluded that this type of litigation funding did not fit within two sets of Georgia… Read more