The plaintiff lender brought a motion for summary judgment to recover three litigation loans advanced to the defendant during the course of a personal injury action.
The defendant admitted owing the principal on two loans but disputed the contractual interest rate of 18% compounded monthly and alleged breaches of fiduciary duty, lack of disclosure of a conflict of interest, and unconscionability.
The court found the borrower had been fully informed of the loan terms and that the interest rate and structure were standard within the litigation lending industry.
The court rejected the defences, holding that any failure to disclose the lender’s relationship to the borrower’s lawyer caused no compensable loss and did not invalidate the agreements.
Summary judgment was granted enforcing repayment of the loans with interest according to their terms, except that interest was not awarded on one loan where the lender had waived it.