The Daniel Patrick Moynihan U.S. Courthouse in the Southern District of New York, at 500 Pearl St. Photo: Ryland West/ALM SDNY Is the New Worst Place To Litigate MCA Disputes
The author writes: Since last June, beginning with the issuance of the befuddling decision in Fleetwood Services v. Ram Capital Funding LLC, the Southern District of New York has taken over the "worst place to litigate" title for merchant cash advance (MCA) transactions. While the SDNY's MCA doctrine and the slew of new filings suggest the civil RICO winter has come for MCA funders with New York choice-of-law provisions, 'Fleetwood' and its progeny provide useful guidance for fixing MCA agreements for a sunnier future.
March 10, 2023 at 10:00 AM
8 minute read
Once upon a time, I lamented that The Worst Place To Litigate Merchant Cash Advance Disputes Is Out-of-State. Since last June, beginning with the issuance of the befuddling decision in Fleetwood Services v. Ram Capital Funding LLC, 2022 U.S. Dist. LEXIS 100837 (S.D.N.Y. June 6, 2022), the Southern District of New York has taken over the "worst place to litigate" title for these merchant cash advance (MCA) transactions. Indeed, some SDNY judges are developing a federal MCA legal doctrine that may be read to substantially deviate from New York state authorities.
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