June 17, 2019

Colorado Supreme Court: Litigation Finance Companies are Lenders for UCCC Purposes

The Colorado Supreme Court issued its opinion in Oasis Legal Finance Group, LLC v. Coffman on Monday, November 16, 2015.

Uniform Consumer Credit Code—Litigation Finance Transactions—Loans.

The Supreme Court held that litigation finance companies that agree to advance money to tort plaintiffs in exchange for future litigation proceeds are making “loans” subject to Colorado’s Uniform Consumer Credit Code even if the plaintiffs do not have an obligation to repay any deficiency if the litigation proceeds are ultimately less than the amount due. These transactions create debt, or an obligation to repay, that grows with the passage of time. The court of appeals’ judgment was affirmed.

Summary and full case available here, courtesy of The Colorado Lawyer.

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