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Maslowski v. Prospect Funding Partners LLC

944 N.W.2d 235 (2020)

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Maslowski v. Prospect Funding Partners LLC

Minnesota Supreme Court
944 N.W.2d 235 (2020)

SC

Facts

Pamela Maslowski (defendant) filed a personal-injury claim against a third party. Maslowski contacted Prospect Funding Partners LLC (Prospect) (plaintiff) to help finance the litigation. Maslowski agreed to sell Prospect a portion of her potential settlement in the lawsuit in exchange for $6,000 to help her pay for her litigation costs. Maslowski reached a settlement in her lawsuit but then did not pay Prospect its portion due under their contact. Prospect sued Maslowski to recover. The trial court ruled that the contract between Maslowski and Prospect was unenforceable under Minnesota’s common-law prohibition against champerty. Prospect appealed.

Rule of Law

Issue

Holding and Reasoning (Hudson, J.)

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