Is lawsuit funding legal in Michigan?

Funding in Michigan

We fund in Michigan, on the same published terms as everywhere else we operate: 25% per six-month period while a case is open, 15% once it has settled, capped at 2×. It is one of the 20 states plus the District of Columbia where we do.

Why this changed recently

The map moved materially in 2026. North Carolina became the first state to ban third-party litigation financing outright, under HB 315, effective June 22, 2026. New York’s Consumer Litigation Funding Act took effect on June 17, 2026. Georgia began requiring NMLS registration on January 1, 2026, and made larger funding agreements discoverable in civil cases.

If you are reading an article about funding law written before 2026, assume it is out of date. This area is moving quickly and three material changes landed in the first half of the year alone.

Michigan claim deadlines

The personal injury filing deadline in Michigan is 3 years from the date of injury in most cases. Missing it bars the claim permanently, however strong it is.

Workers’ compensation runs on a separate clock. Notify your employer within 90 days and file the claim within 2 years.

Claims against government entities usually require a formal notice of claim far sooner — often 30 to 180 days — and missing that bars the claim even though the ordinary deadline has years left. More on notice of claim.

If you were partly at fault

Michigan applies modified comparative negligence — 51% bar. You can recover as long as you were not more than 50% at fault. Your award is reduced by your share of the blame. How comparative negligence works.

Is an advance a loan in Michigan?

A genuine pre-settlement advance is non-recourse: it is repaid only from a recovery, and if the case does not recover there is nothing to repay. That is the distinction most state statutes turn on, and it is why the map looks so uneven — where a court treats an advance as a loan, state lending and usury rules apply, which is the basis on which Colorado and Maryland regulate these products as consumer loans. More on usury and funding.

This page summarizes publicly reported legislation and published statutory summaries. It is not legal advice and it is not a compliance opinion. Your attorney is the right person to ask about your case.