Champerty & maintenance

Maslowski v. Prospect Funding Partners LLC

Minnesota Supreme Court · US (MN) · 2020 · Decided; remand followed

Citation/Docket: 944 N.W.2d 235 (Minn. 2020)

Parties & Funders

Posture: Funder sued to enforce consumer funding agreement
Funder(s) involved: Prospect Funding Partners

Background

A personal-injury plaintiff received a purchase agreement advance; when she resisted repayment, litigation tested Minnesota's common-law champerty bar.

Holding & Outcome

Minnesota Supreme Court abolished common-law champerty prospectively, citing modern safeguards; on remand courts still scrutinized the agreement's terms (e.g., rates) for unconscionability.

Practical Lesson

Champerty's decline does not end scrutiny, unconscionability and rate review survive as the second line of attack on consumer agreements.

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Compiled from public sources (court filings, published opinions, and secondary reporting) as part of the Institute's Phase 1 Dispute Library research. This is educational material, not legal advice; case citations should be independently verified before relied upon.

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