Rancman v. Interim Settlement Funding Corp

In Rancman v. Interim Settlement Funding Corp. (2003), 99 Ohio St.3d 121, 2003 Ohio 2721, 789 N.E.2d 217, a car accident victim contacted Interim Settlement Funding Corp. prior to the resolution of her case with her insurer seeking an advance of funds secured by her pending claim. Interim forwarded the victim money on two occasions, one on behalf of a second company, in exchange for money that she would collect from her insurer. If the case was not resolved in the victim's favor, the victim had no obligation under the contracts to repay the money. The victim settled her case, but refused payment on the contracts. Instead, she tendered return of the moneys advanced to her, with interest, and then filed suit against both Interim and the second corporation, seeking revision of the contracts. The trial court found that the transactions violated usury laws and the Court of Appeals affirmed. The corporations then appealed. In affirming the decision of the lower court, the Ohio Supreme Court, in Rancman, held, in relevant part, as follows: "The advances sub judice constitute champerty because FSF and Interim sought to profit from Rancman's case. They also constitute maintenance because FSF and Interim each purchased a share of a suit to which they did not have an independent interest; and because the agreements provided Rancman with a disincentive to settle her case." Id at paragraph 14.