NY upholds litigation finance fund’s suit against law firm

Ruling on a motion to dismiss, New York Supreme Court Justice Shirley Werner Kornreich refused to dismiss Hamilton Capital VII’s lawsuit against Khorrami LLP, a Los Angeles based plaintiffs firm. Justice Kornreich rejected claims that the financial arrangement amounted to illegal fee sharing and found the financial arrangement supported by public policy. “Modern litigation is expensive, and deep pocketed wrongdoers can deter lawsuits from being filed if a plaintiff has no means of financing her or his case. Permitting investors to fund firms by lending money secured by the firm’s accounts receivable helps provide victims their day in court.” Hamilton Capital VII, LLC v Khorrami, LLP, 2015 N.Y. Misc. LEXIS 2954, *20, 2015 NY Slip Op 51199(U), 9 (N.Y. Sup. Ct. Aug. 17, 2015).