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Consumer Legal Funding Going into 2021

Consumer Legal Funding Going into 2021

The following article was contributed by Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding (ARC).  As we put 2020 in our rear-view mirror, let us look at what took place in the space of Consumer Legal Funding. The American Bar Association (ABA) adopted the Best Practices for Third-Party Litigation Funding. In it, the ABA lays out a set of guidelines that attorneys should follow when working with Consumer Legal Funding companies. This will ensure that consumers, attorneys, and funding companies will be protected, and the product will be offered properly. The New Jersey State Bar Association (NJSBA) board voted to support the ABA resolution on litigation financing. To ensure consistency across the country, ARC updated our set of Best Practices to be in line with the ABA set of Best Practices on the industry. This will ensure that a consumer in Maine will have the same set of Best Practices as a consumer in Oregon. As a follow-up to the new set of Best Practices, the ABA held a virtual CLE to explain how they would be implemented. ARC participated and explained how our Best Practices are beneficial for consumers and the industry as a whole. In addition to the ABA, the New York City Bar Association published its report on use of Litigation Funding for Consumers. In the report, they publish a set of guidelines that should be followed in a contract with the consumer, including stating that the agreement is a non-recourse transaction, ensuring acknowledgement by the consumer’s attorney, and affirming non-compensation to the consumer’s attorney. The California Bar Association also published its opinion on the industry, which was consistent with what was stated by the ABA and the New York City Bar Association. Additionally, the state of Utah introduced and passed legislation to regulate Consumer Legal Funding. The legislation—which was passed nearly unanimously—insists on clear notice and disclosure to the consumer as to the terms and conditions of the contract. The consumer’s attorney will be made aware of the transaction and that there are no rate restrictions on the product, thereby allowing the free market to dictate rates. Each company will have to report on an annual basis the rates they do charge to the state. As we roll into 2021, we are hoping that other State Associations will follow the lead of the ABA, NJSBA, the New York City Bar Association and the California Bar Association in setting up practical guidelines for the use of Consumer Legal Funding. We also hope that other State Legislatures follow what Utah, Nebraska, Ohio, Maine, and Oklahoma have done in passing sensible legislation that provides consumer protections while allowing the industry to operate in a free market environment. Eric Schuller President ARC
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Karyn Cerulli Joins High Rise Financial to Bolster PI Funding

By John Freund |

High Rise Financial has added industry veteran Karyn Cerulli as Regional Vice President of Sales, deepening the Los-Angeles-based funder’s reach into the personal-injury bar. Cerulli spent more than a decade with FindLaw and Thomson Reuters, where she partnered with firms on digital marketing and business-development strategies. In her new role she pivots from lead generation to liquidity, positioning High Rise’s non-recourse advances as a client-care tool for plaintiffs’ firms facing lengthy litigation timelines.

A post on LinkedIn sets out Cerulli’s agenda: hands-on attorney support, a “best rate guarantee,” and white-glove service that places “zero pressure” on case strategy while delivering cash within days. Cerulli frames High Rise as a complement rather than a competitor to existing funders, inviting firms to keep her on standby as a “second option” or safety net when primary partners stall or pricing shifts.

The move comes amid rapid growth for High Rise, which secured a $100 million senior credit facility late last year to expand its pre-settlement portfolio and medical-lien program. The funder touts 24-hour approvals, no credit checks, and repayment only from a successful resolution—features that resonate with Cerulli’s long-time focus on consumer-friendly legal services. With her network of plaintiff-side marketers and case managers, the company hopes to accelerate origination across high-volume auto and premises claims.

Golden Pear Upsizes Corporate Note to $78.7M Amid Growth Plans

By John Freund |

Golden Pear Funding has extended and upsized its investment-grade corporate note to $78.7 million, further bolstering the firm's capacity to serve the expanding litigation finance sector. The New York-based funder, a national leader in both pre-settlement and medical receivables financing, said the proceeds will support working capital and fuel strategic growth initiatives.

A press release from Golden Pear outlines how the capital raise reflects continued investor confidence in the firm’s business model. CEO Gary Amos noted that the infusion is critical as Golden Pear seeks to scale alongside the “rapidly expanding litigation finance market.” CFO Daniel Amsellem added that the new funding aligns with the company’s capital allocation strategy, aimed at optimizing operational efficiency and executing strategic projects.

Brean Capital, LLC acted as the exclusive financial advisor and sole placement agent on the transaction.

Founded in 2008, Golden Pear has funded more than $1.1 billion to over 87,000 clients and remains one of the largest specialty finance companies in the U.S. Its business model spans legal case funding and medical receivables purchasing, with backing from a network of private equity partners that provide institutional support for continued expansion.

Mayfair Legal Launches Wildfire Support Program for Plaintiffs

By John Freund |

Mayfair Legal Funding has unveiled a new initiative aimed at aiding wildfire victims in Los Angeles and Maui by providing pre-settlement advances tailored to individuals pursuing legal claims related to recent wildfire disasters. The program seeks to ease the financial burden on plaintiffs during the lengthy litigation process, allowing them to cover essential living expenses and medical costs without being forced into early or inadequate settlements.

An article in OpenPR reports that Mayfair’s program will provide wildfire-impacted claimants with cash advances while their cases proceed through court or settlement negotiations. The funding is non-recourse, meaning recipients are only obligated to repay the advance if their case is successful. This offering is particularly timely in light of the mounting legal battles related to utility-sparked wildfires in California and the catastrophic 2023 fires in Maui, both of which have left thousands seeking legal recourse and financial recovery.

Mayfair emphasized that this initiative aligns with its mission to ensure access to justice regardless of a claimant’s financial status. “We believe that no one should have to choose between basic survival and pursuing a rightful claim,” said a spokesperson for the funder, noting that the company’s underwriting process is designed for speed and minimal paperwork.

With natural disasters on the rise and litigation timelines stretching longer than ever, targeted pre-settlement funding like this may become an increasingly vital tool for plaintiffs. The wildfire-specific program from Mayfair underscores a growing trend of funders developing specialized products for mass torts and disaster-related litigation—an area likely to see heightened investor and regulatory attention in the years ahead.