Updated on 6/9/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans in Rhode Island. Below you will find the following information:
Lawsuit funding laws, regulation and relevant ethics opinions in Rhode Island
Rhode Island has introduced bills in an effort to regulate lawsuit loans, but not have passed to-date. Rhode Island common law indicates that the courts still uphold common law champerty doctrines and legal funding contracts could be challenged. In RI, lawyers are not allowed to lend money to clients for living expenses. Most national funding companies provide loans to plaintiffs in Rhode Island.
Laws regarding lawsuit loans in Rhode Island
RI S2457 was introduced in February of 2018. The bill sought to regulate litigation lending agreements as loans. The bill did not pass and there is currently no statutory regulation of lawsuit loans. The common law maintenance doctrine is in effect in Rhode Island, but modern funding agreements that do not allow the funder control over the litigation should not be impacted.
Source: RI S2457 (2018)
Legal funding case law in Rhode Island
In a dispute about the dissolution by sale of a partnership agreement, at the advice of a lawyer, one of the parties began pursuing baseless litigation in an attempt to force the other party to settle for more favorable terms. Though the lawyer was not retained to pursue the lawsuit, the lawyer continued to assist with and direct the lawsuit. The court found that this constituted maintenance. Because most modern pre-settlement lawsuit lending arrangements disallow the financier from controlling the litigation, this would unlikely be an issue for legal funding companies in the state.
Source: Toste Farm Corp. v. Hadbury, Inc.
Can a lawyer lend money to a client in Rhode Island?
If there is pending litigation on a case, attorneys cannot help clients out financially according to the Rhode Island bar association. They can, however, cover or advance litigation expenses.
Source: Rhode Island Rules of Professional Conduct Rule 1.8(e)
Lawsuit loan companies serving Rhode Island
Recommended lawsuit loan companies funding Rhode Island 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 Rhode Island
Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Rhode Island. Local funding companies interested in being included on this page may contact us at [email protected]