A litigation funding company sued a personal injury lawyer and his firm to recover amounts advanced under several loan agreements used to fund litigation disbursements.
The dispute concerned the meaning of “transfer of the client’s file” in the contracts and whether such transfers triggered immediate repayment obligations.
The defendants argued the term was ambiguous and relied on an alleged side agreement that loans need not be repaid where settlements were under $50,000.
The court held the contracts were clear that repayment became due when client files were transferred to new counsel and rejected the alleged side agreement as not altering the written agreements.
Judgment was granted to the lender for the outstanding balances with interest and the defendants’ counterclaim was dismissed.