TRENTON, N.J. (Legal Newsline) - A woman who challenged her agreement with Oasis Legal Finance as illegal has been told she filed her lawsuit in the wrong court.
New Jersey federal court Michael Farbiarz on March 19 enforced a forum-selection clause in the contract between Oasis and Shana Gafner, who filed a class action lawsuit against the company in 2023.
Oasis offers lump sum payments to litigants in exchange for a percentage of what they end up recovering in court. These agreements, Gafner allege, violate New Jersey's usury laws because Oasis ends up making a higher percentage than what is allowed, though Oasis contends they aren't traditional loans subject to usury laws.
Gafner's case hasn't reached that stage of litigation yet, however. It was held up when Oasis pointed to a clause in Gafner's contract that required all disputes to be filed in Cook County Circuit Court in Chicago.
Gafner said that clause was void because the contract was too, because it was illegal.
"But the Third Circuit has set a high bar," for invalidating forum-selection clauses, Judge Farbiarz wrote. "A plaintiff must show that the 'forum selected is so gravely difficult and inconvenient that the resisting party will for all practical purposes be deprived of his day in court.'
"The Plaintiff's arguments are not developed enough to meet this test."
Gafner alleged the relevant witnesses live in New Jersey but did not identify them or explain why they couldn't make it to Chicago, if needed, Farbiarz said.
"In addition, the Plaintiff does not point to any particular documents or other evidence that it would be difficult to get into court in Illinois - because of geographical limits on the Cook County court's subpoena power, for example, or for any other reason," he added.