Litigation financing companies aren’t subject to the interest-rate cap and licensing requirements of Georgia lending laws, the Georgia Supreme Court said in an Oct. 22 decision.
The state’s Industrial Loan Act and Payday Lending Act don’t apply to financing for a plaintiff’s legal expenses if the financing is contingent upon winning an award or settlement in the case, the court said in an 8-0 opinion.
A pair of plaintiffs—Ronald Ruth and Kimberly Oglesby— appealed dismissal of their lawsuit against Cherokee Funding LLC, which they accused of making small-dollar loans without a license and charging excessive interest. Georgia lending laws ...
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