New Jersey Appellate Division Affirms Legal-Bay Legal Funding Agreement

New Jersey's highest court puts to bed protracted litigation attempts by plaintiff's law firm to disqualify litigation funder's valid contract. 

TRENTON, N.J., Aug. 5, 2026 /PRNewswire/ -- Legal-Bay LLC, a national provider of consumer legal funding, announced today that the Superior Court of New Jersey, Appellate Division, affirmed a trial court judgment on July 14^th enforcing Legal-Bay's funding agreement in Viglianti v. Blue (Trial Court Docket: L-0136-22 Superior Court of New Jersey, Law Division, Union County: Appellate Division Docket: A-2183-24).  The appellate court rejected the statutory challenges asserted against the agreement and upheld the lower court's decision, marking an important victory for Legal-Bay and providing meaningful judicial support for the enforceability of properly structured consumer legal funding agreements under New Jersey law.

The case involved a plaintiff who exhausted his automobile Personal Injury Protection (PIP) benefits but required spinal fusion surgery following a motor vehicle accident. Legal-Bay funded $90,000 directly to medical providers so the plaintiff could obtain the treatment he needed while pursuing his personal injury claim. After the case later settled, the plaintiff challenged Legal-Bay's contractual right to repayment, arguing that New Jersey statutes governing PIP reimbursements and physician liens rendered the agreement unenforceable. Both the trial court and the Appellate Division rejected those arguments.

In its opinion, the Appellate Division concluded that the funding agreement was a private contract voluntarily entered into by the plaintiff after consultation with counsel, and that the statutes cited by the plaintiff did not invalidate or limit the agreement. The court further recognized that the funding allowed the plaintiff to receive necessary medical treatment after available insurance benefits had been exhausted.

Legal-Bay was represented on appeal by Daniel B. Cohen of Fox Rothschild LLP in Morristown, New Jersey, whose advocacy successfully defended the trial court's ruling before the Appellate Division.

Michael Viglianti was represented by The Law Office of Karim Arzadi in both the personal injury car accident matter as well as the appeal. 

"We applaud today's decision by the Appellate Division and the outstanding work performed by our counsel in affirming the enforceability of our funding agreement," said Chris Janish, CEO of Legal-Bay. "While we are pleased with the court's decision, we also recognize that thoughtful legislation can further strengthen the industry. We look forward to working with policymakers to clearly define a fair and balanced framework that protects consumers while ensuring litigation funding remains available to help plaintiffs meet critical living expenses and medical needs while they pursue their legal claims."

Janish added, "As a company we will always work with law firms and plaintiffs to come to a fair resolution that makes sense for all, but in the instant matter we were left with no choice but to vigorously defend our rights all the way through the appellate court process."

If you're a lawyer or plaintiff involved in an active lawsuit and need an immediate cash advance against an impending lawsuit settlement, please visit Legal Bay HERE or call toll-free at 877.571.0405.

Consumer legal funding is a non-recourse financial product, meaning repayment generally occurs only if the consumer obtains a recovery in the underlying legal claim. For many plaintiffs, these funds provide essential support for medical care, housing, transportation, and other living expenses during litigation; while the litigation funder is exposed to 100% risk of capital if the claims are unsuccessful. 

Although the Appellate Division's opinion is limited to the parties in this case under New Jersey court rules, Legal-Bay believes the decision reflects the judiciary's careful application of existing contract law to voluntary consumer funding agreements and highlights the important role responsible legal funding can play in expanding access to justice.

If you're a lawyer or plaintiff involved in an active lawsuit and need an immediate cash advance against an impending lawsuit settlement, please visit Legal Bay HERE or call toll-free at 877.571.0405.

Legal-Bay LLC is a proud member of ARC (Alliance of Responsible Consumer Funding), and a national provider of consumer legal funding for plaintiffs involved in personal injury, mass tort, employment, civil rights, and other contingent-fee litigations. Since its founding, Legal-Bay has remained committed to transparent agreements, ethical funding practices, and helping consumers bridge the financial gap while pursuing meritorious legal claims.

To learn more about Legal Bay's lawsuit funding solutions, please visit Legal Bay HERE or call toll-free: 877.571.0405 where agents are standing by.

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Contact: Chris Janish, CEO

          Email:  info@Legal Bay.com
          Ph.: 877.571.0405
          Website: www.Legal Bay.com

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SOURCE Legal-Bay LLC