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6th Circ. Affirms Suit Funder Can’t Get Cash From Burn Victim

Law360 (April 25, 2019, 7:42 PM EDT) -- The Sixth Circuit on Thursday affirmed a Kentucky federal court’s ruling that an agreement by a company to fund litigation initiated by a man who claimed he was harmed by an exploding gas canister violates state laws that prohibit such deals.

Because the deals between Prospect Funding Holdings LLC and Christopher Boling violate Kentucky laws that prohibit what is legally known as champerty and usury, the Western District of Kentucky did not err in prohibiting the company from attempting to collect on agreements that it deemed to be void, according to the three-judge appellate panel’s opinion.

“Champerty” refers to an illegal...

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Attached Documents


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Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only


Appellate - 6th Circuit

Nature of Suit

4190 Contract: Other

Date Filed

June 8, 2018