Shapiro v. US Claims, Inc. (In re Welch)

ORDER GRANTING U.S. CLAIMS, INC.’S MOTION FOR SUMMARY JUDGMENT AND DENYING THE TRUSTEE’S MOTION FOR SUMMARY JUDGMENT

MARK A. RANDON, Bankruptcy Judge.

I. INTRODUCTION

US Claims, Inc. (“USC”) advances money to individuals with legal claims likely to have favorable outcomes. If a claim is successful, USC is repaid its advance— plus a significant pre-negotiated return on its investment; nothing is owed, if the claim is dismissed or money is not recovered. The arrangement is accomplished through a Purchase Agreement: USC buys an interest in some or all of the anticipated claim proceeds, to be repaid…