Monthly Archives: July 2016

Bankruptcy Trustee Seeks to Recharacterize Litigation Financing Contract as Loan, Survives Motion to Dismiss

A litigation finance firm advanced funds to an attorney working a personal injury case on contingency. The attorney ultimately settled the case and was awarded a portion of the settlement as his fee. Following the settlement award, the attorney’s creditors, including the … Continue reading

Posted in Bankruptcy, Civil Usury, Federal Court, Recharacterization | Comments Off on Bankruptcy Trustee Seeks to Recharacterize Litigation Financing Contract as Loan, Survives Motion to Dismiss

Appellate Court Permits Use of Parol Evidence to Support Usury Defense

Two New York debtors entered into a promissory note with a lender in which the lender agreed to lend $35,000 to the debtors and the debtors promised to repay the lender $35,000 plus 15% interest. When the debtors failed to make … Continue reading

Posted in Civil Usury, New York, Parol Evidence, State Court, Usury Cap | Comments Off on Appellate Court Permits Use of Parol Evidence to Support Usury Defense