Oasis Legal Finance Group, et al., v. Suthers

Case Updates

The Colorado Court of Appeals held that the financial transactions at issue here, which involved providing money to people (tort plaintiffs) who had pending personal injury claims against third parties, were “loans” under the Colorado Uniform Consumer Credit Code.

The U.S. Chamber and the Denver Metro Chamber filed an amicus brief in support of the Colorado Attorney General to urge the Colorado Court of Appeals to affirm the opinion of the Denver District Court that companies that advance funds to consumer plaintiffs to finance litigation are “lenders” subject to regulation under Colorado's Uniform Consumer Credit Code (UCCC). The Chamber argued in its amicus brief that because the plaintiffs' lawsuit funding transactions are actually loans charging exorbitant interest rates - interest rates often in excess of 100% - these lenders and the transactions should be regulated under the UCCC. Additionally, the Chamber argued that public policy concerns underscore the need to regulate these loans. The Chamber pointed out that unregulated consumer lawsuit lending hurts Colorado businesses by prolonging litigation and driving up settlement costs as well as increasing the burden on Colorado courts.

David Fine of the law firm McKenna Long & Aldridge LLP served as the Litigation Center's co-counsel on the brief.