Updated on 6/9/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans in Delaware. Below you will find the following information:
Lawsuit funding laws, regulation and relevant ethics opinions in Delaware
Delaware does not have any state law regarding lawsuit loans specifically. Common law in Delaware supports legal funding in the state so long as a funding company does not interfere with the case. The Delaware State Bar Association issued an ethics opinion indicating that attorneys may comply with lawsuit lending contracts on behalf of their clients. Most lawsuit lending companies provide funding in Delaware.
Legal funding case law in Delaware
Delaware common law defines champerty as “an agreement between the owner of a claim and a volunteer that the latter may take the claim and collect it, dividing the proceeds with the owner, if they prevail; the champertor to carry on the suit at his own expense.” In Charge Injection Techs., Inc. v. E.I. Dupont De Nemours & Co the court denied two motions by Dupont relating to a lawsuit lending agreement between Charge Injection Techs (CIT) and Burford Capital. The first was a motion to compel CIT to disclose certain redacted parts of the agreement. The court ruled that these were privileged under attorney work product protections. The second was a motion to dismiss the case on the grounds of violations of champerty and maintenance doctrines. The court ruled that the contracts did not violate champerty and maintenance doctrines because Burford did not have or assert control over the litigation.
Source: Charge Injection Techs., Inc. v. E.I. Dupont De Nemours & Co
Can a lawyer lend money to a client in Delaware?
Lawyers cannot offer or guarantee financial assistance to clients in Delaware. The can assist clients with covering litigation however. the attorney can either cover the costs of litigation completely (if the client is found to be impoverished) or advance them to the end of the case.
Source: The Delaware Lawyers Rules of Professional Conduct: Rule 1.8(e)
Can attorneys help clients receive lawsuit loans in Delaware?
As long as an attorney advises the client of the potential risks of legal funding, the attorney can assist the client in getting funds.
Source: Delaware State Bar Association Committee On Professional Ethics Opinion 2006-2
Lawsuit loan companies serving Delaware
Recommended lawsuit loan companies funding Delaware residents
US Claims offers some of the lowest, non-compounding rates in the industry. Many companies claim to offer “the lowest rates in the industry” – we recommend comparing them against an offer from US Claims. to see for yourself.
Thrivest Link Legal Funding offers fair terms with a fast, efficient funding process. Many companies claim to offer same-day or 24-hour lawsuit loans but Thrivest Link Legal Funding often actually makes it happen.
Lawsuit loan companies located in Delaware
Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Delaware. Local funding companies interested in being included on this page may contact us at [email protected]