Can I get a cash advance on my lawsuit in Massachusetts, and what does Massachusetts law say?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

Saladini v. Righellis: the facts

The case did not involve a funding company. In September 1992, Lisa Saladini signed a written agreement to advance money so George Righellis could pursue legal claims tied to his interest in a Cambridge property called Putnam Manor. She had no interest in the property herself. If the claims produced money, she would first be repaid and then receive 50 percent of the net recovery after attorney’s fees. In all she advanced $19,229 (426 Mass. 231).

The Putnam Manor suit settled for $130,000. Saladini was not told at first, and she sued and got an injunction blocking the money from being paid out. A Superior Court judge then raised champerty on her own and dismissed Saladini’s complaint, even though Righellis had not challenged the agreement on that ground.

What the Supreme Judicial Court decided

On December 8, 1997, the court reversed. Its holding: “We rule that the common law doctrines of champerty, barratry, and maintenance no longer shall be recognized in Massachusetts.” It explained that “we no longer are persuaded that the champerty doctrine is needed” to deal with speculation, frivolous suits or overreaching, and that “We have long abandoned the view that litigation is suspect.”

The court pointed to other tools that do the work champerty used to do, including Chapter 93A (the state consumer protection law) and “the doctrines of unconscionability, duress, and good faith.” It said courts can still ask whether a financier charged excessive amounts or engaged in “impermissible overreaching.”

It then sent the case back without deciding whether Saladini’s deal was fair. The trial judge was to weigh factors such as the parties’ bargaining positions and whether both understood the terms, and to consider whether Righellis’s claim that he would end up with only $35,000 of the $130,000 settlement was reasonable. The court said Righellis should not receive a windfall, and also that the whole adjustment should not fall on Saladini.

What Saladini means for an advance today

• Champerty alone will not void a Massachusetts funding contract.
• A court can still look at whether the terms are unconscionable or unfair, using the factors Saladini listed.
• Saladini is not a usury case. The opinion does not discuss interest-rate law, so it does not tell you whether an advance is a loan.

Massachusetts usury and small-loan law

Two statutes would matter if an advance were treated as a loan. We found no Massachusetts appellate decision deciding whether a non-recourse advance, repaid only from a recovery, is a loan under either one. Courts elsewhere have disagreed; see is a lawsuit cash advance a loan.

Criminal usury. G.L. c. 271, § 49(a) makes it a crime to knowingly charge or receive, for a loan of money or other property, “interest and expenses the aggregate of which exceeds an amount greater than twenty per centum per annum upon the sum loaned.” The statute counts many charges as “interest and expenses,” including fees for arranging the loan. Under § 49(c), a loan at a forbidden rate “may be declared void” by the Supreme Judicial Court or Superior Court on a petition by the borrower. Section 49(d) exempts a lender that has notified the Attorney General, a notice valid for two years, with record-keeping duties.

Small loans. Under G.L. c. 140, § 96, no one may be in “the business of making loans of six thousand dollars or less” where interest and expenses exceed the equivalent of 12 percent a year, without a license “from the commissioner of banks.”

Those numbers are legal thresholds. They are not what any company charges, and whether they reach a given contract is the unsettled loan question.

Your three-year deadline

G.L. c. 260, § 2A gives three years from when the cause of action accrues for tort actions and contract actions to recover for personal injuries, “Except as otherwise provided.” Claims against public bodies and some other claims have their own rules. An advance does not stop the clock.

Where to complain in Massachusetts

The Attorney General’s Consumer Advocacy & Response Division takes complaints through its online form, by mail to One Ashburton Place, 18th Floor, Boston, MA 02108, or in person at an office location. The consumer hotline is (617) 727-8400 (how to file).

What to ask before you sign

• If the company says its contract is a purchase and not a loan, what yearly rate does the total charge work out to, and how does that compare with the 20 percent line in c. 271, § 49?
• Does the company hold a small loan license from the Commissioner of Banks, or say it does not need one? Ask why.
• Would the terms look fair under the Saladini factors if a judge read them? Our contract red flags page lists terms to check.
• What do you owe if the case ends with nothing? See what happens if you lose your case.

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.