TRENTON, N.J. (Legal Newsline) - Oasis Legal Finance says a proposed class action against it should be tossed from New Jersey court.
The claims of plaintiff Shana Gafner, the company says, are governed by a forum-selection clause in her agreement that requires disputes to be filed in Illinois' Cook County Circuit Court.
Oasis, a company that offers funds to plaintiffs in exchange for a percentage of what they recover, says this in a Feb. 23 motion to dismiss in New Jersey federal court. Gafner sued Oasis Jan. 4 in New Jersey state court, and Oasis removed the case to federal court.
Funders like Oasis, which end up earning a higher percentage than what is allowed by usury laws, say they can't be regulated like regular lenders because if their client loses in court, they receive nothing too.
Gafner alleges in her class action that Oasis uses "unlawful and usurious lending practices" without a license. Specifically, Gafner claims that Oasis solicits New Jersey clients who have pending litigation claims and offers a "nonrecourse purchase agreement" disguised as a loan transaction.
She further claims Oasis is not registered to do business in New Jersey, which makes their loans void and unenforceable. Gafner alleges that Oasis failed to gain the proper licensing for the open-end loan transactions and charges interest and fees that exceed the lawful maximums.
She claims the loans were also made without the adequate disclosures.
"Plaintiff improperly commenced the instant action against the Oasis parties in New Jersey, in contravention of the agreements' presumptively valid, enforceable and mandatory forum-selection clause, which dictates that Plaintiff bring any and all claims arising out of the agreements in Cook County, Ill.," the motion says.