A Houston-based law firm and its founding partner have recently submitted an appeal to a Texas court, seeking to overturn a prior decision upholding a lawsuit brought by a litigation funding company. The suit centers on a $2 million loan that the law firm is alleged to have not repaid.
The initial push to dismiss the suit was not successful, putting the legal firm and its founder back in the courtroom for a renewed attempt at having the case dismissed. The factors that led to this latest appeal, as well as its potential implications for both parties, remain to be fully seen since the developments are currently unfolding.
The decision that the appeals court makes could have important implications for the broader sphere of litigation finance, which sees companies providing funds to parties involved in legal cases in return for a portion of the proceeds if the case is successful.
More details can be gathered from the original report on Law360.