Oasis Legal Fin. Grp. v. Coffman

This case concerned the nature of transactions that petitioners, national litigation finance companies, made with tort plaintiffs seeking funds to pay personal expenses while waiting for their lawsuits to settle or go to trial. Plaintiffs usually agreed to pay the companies a sum of money from the future litigation proceeds. By the terms of the agreements, any money the companies give tort plaintiffs were not to be used to prosecute the legal claims. The specific issue this case presented for the Colorado Supreme Court’s review centered on whether the companies’ forwarding of expense money to tort plaintiffs constituted a “loan.” Petitioners contended they were “asset purchases,” but the Colorado Uniform Consumer Credit Code interprets these transactions as loans. The Supreme Court agreed with the UCCC: these transactions are loans. View "Oasis Legal Fin. Grp. v. Coffman" on Justia Law