Updated on 6/9/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans in Minnesota. Below you will find the following information:
Lawsuit funding laws, regulation and relevant ethics opinions in Minnesota
Before 2020, Minnesota prohibited lawsuit loans based on the champerty doctrine. In 2020 however the court decided that lawsuit loans were not champertous. Some pre-settlement funding companies now provide advances to Minnesota residents.
Legal funding case law in Minnesota
Prospect Funding Partners provided pre-settlement funding to Maslowski. At the conclusion of the case, Prospect Funding Partners was not repaid. Though common law prohibited lawsuit loans in the past, the Minnesota Supreme Court reversed precedent. This reopened the door to lawsuit funding for MN residents.
Source: Maslowski v. Prospect Funding Partners LLC
Can a lawyer lend money to a client in Minnesota?
Lawyers cannot subsidize or pay for lawsuits brought on by clients. A lawyer can advance the costs of litigation to the end of the trial, with repayment being based on the success of the case.
Source: Minnesota Rules of Professional Conduct 1.8(e)
Lawsuit loan companies serving Minnesota
Recommended lawsuit loan companies funding Minnesota 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.