3rd Circ. Backs Litigation Funder That Helped Sue Reed Smith

By Dan Packel (February 28, 2018, 3:31 PM EST) -- The Third Circuit on Tuesday affirmed the validity of a New Jersey man's contract with a litigation funder that enabled him to pursue a legal malpractice suit against Reed Smith LLP, rejecting his argument that it was usurious and therefore not enforceable.

In a non-precedential ruling, the appeals court found that John West and his company Restorative Programming Inc. must pay Fast Trak Investment Co. LLC $373,885 from a settlement with Reed Smith, concluding that under New York law governing the contract, litigation funding — which carries no guarantee of repayment — does not qualify as a loan. Consequently, it is...

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