Finding that the arrangement did not run afoul of New York usury laws, the U.S. Court of Appeals for the Third Circuit has ruled that a litigation funder is entitled to a chunk of the proceeds from a plaintiff’s settlement of a legal malpractice lawsuit against Reed Smith.

A three-judge panel of the court on Tuesday affirmed a Western District of Pennsylvania judge’s ruling in Obermayer Rebmann Maxwell & Hippel v. West that two related litigation funding entities, Fast Trak Investment Co. and RJC Funding, were entitled to a portion of the settlement far in excess of the amount the companies fronted to John H.C. West III during the course of his litigation against Reed Smith.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]