Updated on 6/9/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans in Arizona. Below you will find the following information:
Lawsuit funding laws, regulation and relevant ethics opinions in Arizona
Though proposed in the past, there are no statutes governing lawsuit funding agreements in Arizona. Legal precedent for the enforceability of these contracts is questionable. Arizona courts have struck down specific lawsuit lending contracts in the past. The AZ Bar allows lawyers to assist clients in obtaining loans from personal injury loan services with certain limitations.
Laws regarding lawsuit loans in Arizona
Arizona’s senate sought to regulate consumer lawsuit loans and cap the annual rate of interest for a lawsuit loan at 36%. The bill AZ SB 1403 (2015) was proposed but did not pass and become law. There are no statutes directly relating to lawsuit loans in Arizona.
Source: AZ SB1403 (2015)
Legal funding case law in Arizona
In Rick and Joyce Lingel v. Michael and Patricia Oblin, the court decided that the funding contract was unenforceable. However, the court stopped short of indicating that lawsuit loan contracts in general are unenforceable or illegal so long as they do not grant the lawsuit loan company a right or ability to direct the litigation.
Source: Rick and Joyce Lingel v. Michael and Patricia Oblin
Can a lawyer lend money to a client in Arizona?
In Arizona, an attorney cannot help a client cover living or medical expenses. However, a lawyer can help a client by advance the costs of litigation. In cases where the client is indigent, the attorney can cover the costs of litigation completely.
Source: Ariz. R. Sup. Ct. ER 1.8
Can attorneys help clients receive lawsuit loans in Arizona?
Arizona State Bar’s ethics opinion regarding personal injury lawsuit loans indicates that lawyers may assist clients in obtaining pre-settlement funding with certain limitations. The lawyer may not have any financial interest the loan service, may not guarantee repayment of the loan and must maintain client confidentiality.
Source: Arizona State Bar Ethics Opinion 91-22: Financial Assistance to Client
Lawsuit loan companies serving Arizona
Recommended lawsuit loan companies funding Arizona residents
Compare Lawsuit Loans’ recommended funding companies do not operate in Arizona at this time