What is the True Value of Settlement Loans and Lawsuit Funding?

I am often intrigued by concerns our clients express regarding lawsuit funding and settlement loans. Interestingly, although this form of funding is markedly increasing in popularity, most people, to include plaintiffs and attorneys, are unaware of the fact that lawsuit loans are readily available for numerous types of cases. However, even fewer people are aware of the tremendous value of such resources.
We have previously discussed misconceptions surrounding lawsuit loans and interest rates. However, there are no interest rates involved when obtaining settlement loans and lawsuit funding. This is due to the simple fact that litigation funding/advances are not loans. Yes, it is true that many entities that advance settlement funding include terms related to loans in their titles. This is due to the fact that many individuals looking for pre-settlement loans enter the term when searching. However, litigation funding and/or lawsuit funding are the appropriate terms to employ.
Additionally, we suggested ways in which plaintiffs who obtain lawsuit funding and/or settlement loans charge expenses related to such funding against the defendant. Although there are no interest rates, there are risk fees. The risk fees will be contingent on the risks inherent in the case for which funding is sought.
Predictably, the vast majority of clients assure us that their cases are “slam dunks.” Unfortunately, there are few, if any, cases that are a “slam dunk.” Take into consideration the plaintiff who, as a pedestrian, Startup Business Loan For Womens In India was struck by an automobile. The plaintiff assured us, “My case is a slam dunk!” (That may have been the case with merely a cursory view.) Contrariwise, the police report provided militating evidence:
(1) the plaintiff was dressed from head-to-foot in dark clothing;
(2) the collision occurred at night;
(3) it was Strategic Financial Management Ca Final raining;
(4) the plaintiff was walking in the roadway; and
(5) the Incident report stated that the pedestrian was “drunk.” Getting suspicious yet?
However, the purpose of this article is to demonstrate that pursuit of lawsuit funding and/or settlement loans can be extremely valuable in another way. Many of you have heard of “mock juries.” So-called jury-consultants often make millions of dollars assisting attorneys in selecting the most efficacious venue, jury-pool, etc.
Mock juries are intended to permit both plaintiffs and defendants to assess the strengths, as well as the weaknesses of a particular case. Remember, this presentation is made to the only real factors if the case is not settled prior to trial, i.e., jurors. The funding entities that provide lawsuit loans carefully analyze the elements of each case submitted for funding. It is important to keep in mind that these are non-recourse advancements and if the plaintiff does not win their case, the funding-company recoups nothing.
Once the application is submitted for either lawsuit funding or settlement loans, the application, as well as relevant documents will be reviewed by those who specialize in litigation funding. These experts will analyze the information received and determine if additional information is required. The additional documents required may prove tremendously valuable to the client in making his/her case. An example of required documentation, but one often not made available by individuals seeking pre-settlement loans in breach of contract cases, is the written offer. To succeed, the plaintiff must clearly establish liability. Additionally, the defendant’s ability to pay any judgment likely to be awarded must be considered. A judgment of a monetary award is of little value if the plaintiff is unable to collect.
Lawsuit loans provide tremendous financial assistance when utilized appropriately. Make no mistake about it, there is a palpable advantage in being able to rely on litigation funding expertss who have years of experience reviewing many claims similar to that which the plaintiff submits. Plaintiffs should be aware of the fact that funding companies eagerly wish to advance settlement loans and lawsuit funding.

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