News and analysis dedicated to the consumer legal funding sector including mass torts, regulatory issues, case developments, funding activities, and more.

TopConsumerReviews.com recently awarded their highest five-star rating to Prime Case Funding, an industry leader in lawsuit funding companies.

ALBANY, N.Y., Feb. 11, 2019 /PRNewswire/ — Legal-Bay, the premier pre-settlement lawsuit funding source, reports that Governor Cuomo assisted in passing a legislation to extend filing deadlines for sexual abuse survivors in the state of New York (A.8401-C/S.8977).

“The more money our clients invest in advertising, the bigger their firms get, and (consequently) they keep returning for more capital.”

– Joshua Collins, Chief Investment Officer of Attorney Capital Funding,
on why his company is currently experiencing such massive growth.

JERSEY CITY, N.J., Jan. 28, 2019 /PRNewswire/ — Legal-Bay LLC, the pre settlement funding company, is poised to offer 24-hour approvals for victims of personal injury and car and truck accidents. During this time of year, accidents spike due to icy road conditions and reckless driving. Car, semi truck, and other motor vehicle accidents including public bus transportation are prevalent at this time of year, especially when weather conditions are taken into consideration.

JERSEY CITY, N.J., Jan. 14, 2019 /PRNewswire/ — Legal-Bay, the premier Pre Settlement Funding Company, announced today that they are preparing for huge growth in their personal injury and surgical funding departments. Legal-Bay is one of the leading lawsuit funding companies in the industry who also offers a very fast approval process.

CRESSKILL, N.J., Jan. 10, 2019 /PRNewswire/ — RD Legal, a leading investment management firm focused on post-settlement litigation finance, said today that it has named Amy B. Hirsch to the additional role of Portfolio Manager for the firm’s strategies.  Ms. Hirsch joined RD Legal in 2016 as Co-Chief Investment Officer and Chief Operating Officer.

NEW YORK–(BUSINESS WIRE)–Jan 9, 2019–YieldStreet, a digital wealth management platform that is working to change the way that wealth is created, has become the first multi-asset platform to cross over $560MM invested since inception.

The following post was written by Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding (ARC).

As the 2019 Legislative Session begins, we want to take a look at what is the best way to regulate Consumer Legal Funding. Over the past few years, the states have introduced several pieces of legislation with the aim of regulating Consumer Legal Funding. Rather than simply introduce capricious regulations, legislators should familiarize themselves both with the product, and the consumers who need it, before making rash decisions that will impact their constituents for life.

The following is a contributed article by Steven D. Schroeder, Esq., General Counsel/Sr. Vice President at Inheritance Funding Company, Inc. since 2004. 

There have been a few recent articles written on the topic of Probate Advances.[i] Probate Advances are available because a handful of companies are willing to assume a risk and provide funding in return for a partial assignment of a beneficiary’s interest in an Estate, and to a lesser extent Trust Proceedings. One critic has conflated Assignments to Loans without a fair analysis of the many differences between the two legal maxims.[ii] This 4-part series expands upon those differences and provides a legal and practical perspective as to why Probate Advances are a useful option for so many.

The following is Part 4 of our 4-Part series on Probate Funding by Steven D. Schroeder, Esq., General Counsel/Sr. Vice President at Inheritance Funding Company, Inc. since 2004. Parts 1, 2 & 3 can be found here, here and here.

What are the Risks in Probate Funding?

Similar to California Probate Code 11604, (formerly Cal. Probate Code 1021.1), the Legislature, in enacting Probate Code 11604.5, has specifically indicated that Assignments relative to Probate Advances will not be set aside unless it is clear that the consideration paid is “grossly unreasonable”, at the time the transaction was executed. In fact, the Probate Court can presume the validity of an Assignment, in the absence of any objection raised or evidence submitted to the contrary. See Lynch v. Cox. (1978) 83 Cal. App. 3^rd 296, 147 Cal. Rptr. 861.

The following is Part 3 of our 4-Part series on Probate Funding by Steven D. Schroeder, Esq., General Counsel/Sr. Vice President at Inheritance Funding Company, Inc. since 2004. You can find Parts 1 & 2 here and here.

Probate Assignments are Adequately Regulated in California

In California, it is the exclusive jurisdiction of the Probate Court to determine entitlement for distribution, Cal. Probate Code §§11700-11705. Probate Courts may also apply equitable principles in fashioning remedies and granting relief in proceedings otherwise within its jurisdiction. Estate of Kraus (2010) 184 Cal. App 4^th 103, 114, 108 Cal. Rptr. 3d 760, 768. Thus, even without a specific statute addressing assignments, Probate Courts in California, as well as other jurisdictions, have conducted oversight over the propriety of Assignments in Probate.  See In Re: Michels’s Estate 63 P. 2d 333, 334 (Cal. Dist. Ct. App. 1936).

The following is Part 2 of our 4-Part series on Probate Funding by Steven D. Schroeder, Esq., General Counsel/Sr. Vice President at Inheritance Funding Company, Inc. since 2004. Part 1 can be found here.

Comparing Assignments with Loans: Apples Are Not Oranges

As previously stated, there has been some recent criticism of the companies engaged in Probate funding.[1] An Article entitled: “Probate Lending” started and ended with the premise that Probate Assignments are in fact disguised loans and should be regulated as such. Despite the predetermined conclusion by one author, in fact, the law treats Assignments and Loans quite differently and those distinctions are significant.[2]

The following is a contributed article by Steven D. Schroeder, Esq., General Counsel/Sr. Vice President at Inheritance Funding Company, Inc. since 2004. 

There have been a few recent articles written on the topic of Probate Advances.[i] Probate Advances are available because a handful of companies are willing to assume a risk and provide funding in return for a partial assignment of a beneficiary’s interest in an Estate, and to a lesser extent Trust Proceedings. One critic has conflated Assignments to Loans without a fair analysis of the many differences between the two legal maxims.[ii] This 4-part series expands upon those differences and provides a legal and practical perspective as to why Probate Advances are a useful option for so many.

Evolution. Maturity. Growth spurt. Those are the terms one might use to describe Litigation Finance in 2017.  The industry saw a flurry of activity that would make any beehive jealous: Markets opened, funds raised, legal precedents established, and a host of new entrants already looking to disrupt the lit fin industry, which itself is in the midst of disrupting one of the oldest institutions on the planet.

So let’s take a look back at how Litigation Finance ‘took off the training wheels,’ and properly came of age in 2017…