MANASQUAN, N.J., March 23, 2016 /PRNewswire/ -- Fair Rate Funding, a leader in the lawsuit funding industry, reports a recent verdict regarding the legality of lawsuit funding transactions in Delaware. On March 9th, the Delaware Superior Court denied defendant's motion to dismiss based upon the obscure doctrine of Champerty.
The recent Delaware case involved a commercial dispute between Charge Injection Technologies ("CIT") and E.I. Dupont De Nemours & Company ("Dupont") over the use of proprietary technologies.
Understanding the litigation was going to be costly, CIT entered into a lawsuit funding transaction to secure the means to pursue its claims. The agreement pledged a portion of the future recovery value of CIT's claims against Dupont.
Champerty evolved centuries ago where an entity would purchase an interest in a claim under litigation. The transaction allowed the entity to pay "pre-settlement" expenses and entitled it to share the benefits if the lawsuit was successful.
The practice was abolished long ago due to abuse, but has recently resurfaced when discussing the relatively recent emergence of the lawsuit funding industry.
Lawsuit funding transactions occur when a party agrees to purchase a portion of the future proceeds in a litigation.
Dupont sought to have the CIT's case dismissed based upon the doctrine of Champerty and Maintenance and argued the lawsuit funding agreement gave the lawsuit funding company 'de facto' control over the litigation. The Delaware Court disagreed. The Court's decision can be found here.
Paul Coppola, President of Fair Rate Funding, a lawsuit "loan" company based in New Jersey, commented on the decision: "The doctrine(s) of Champerty and Maintenance have been used to attack the advancing of money to litigants for years. Although this recent decision involved a commercial litigation matter, the reasoning is sound across all litigation finance matters."
Fair Rate Funding specializes in advancing cash now for plaintiffs who are involved in personal injury lawsuits. Sometimes referred to as settlement loans or lawsuit loans, settlement funding is NOT a loan transaction but a purchase of a portion of a future recovery. If the lawsuit is unsuccessful for any reason and no money is recovered, the lawsuit funding is not repaid.
The purpose of lawsuit funding is to help litigants pay expenses while they wait for a fair lawsuit settlement. Lawsuit funding alleviates financial stress so plaintiffs are not forced to accept "low ball" settlement offers.
By offering cash now to help pay for any type of expense such as car loans, rent and mortgage payments, utility payments, personal loans, and daily living expenses, Fair Rate Funding eases the stress associated. There are no restrictions on the use of the funds. For answers to frequently asked lawsuit funding questions, visit: http://professionalsettlementfunding.com/faq/
Fair Rate Funding's representatives are working around the clock to make sure each and every client gets the attention they need and to see them through to obtaining a cash advance. Fair Rate Funding is able to offer the lowest rates in the industry and makes the process as seamless as possible.
Fair Rate Funding lawsuit settlement funding programs are not a lawsuit loan or lawsuit loans although they are often referred to as such. A pre-settlement lawsuit cash advance is not a settlement loan or settlement loans because the advance is only repaid if the case is successful. Your attorney will repay your case funding or lawsuit advance ONLY if your case is won or settled.
Fair Rate Funding prides itself on providing the quickest approvals – as soon as 24 hours on most cases, the lowest monthly usage rates – as low as 2.5% per month, and the most attentive customer service in the lawsuit funding industry.
For more information about lawsuit funding and other services from Fair Rate Funding, simply call a representative at 888-964-2224. Operators are standing by.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lawsuit-funding-firm-fair-rate-funding-reports-recent-settlement-funding-decision-in-delaware-300240580.html
SOURCE Fair Rate Funding