Minn. Ruling Represents Sensible Stance On Legal Finance

Law360 (June 4, 2020, 4:52 PM EDT) -- The Minnesota Supreme Court has made it easier for litigants in Minnesota to obtain financing for their legal claims.

In its decision Wednesday in Maslowski v. Prospect Funding Partners LLC, the court observed that the evolution of social needs has rendered the doctrine of champerty unnecessary.

Minnesota thus joins a majority of states that either never recognized the doctrine of champerty, or abolished it by statute or case law. In doing so, as the first high court to carefully consider this issue in decades, it rejected all the arguments commonly made for why litigation finance ought to be regulated.

Champerty, as...

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