Lawsuit Funding Essay

523 Words2 Pages

Lawsuit funding is non-recourse cash advance made by a plaintiff against a pending lawsuit. It is a non-recourse settlement funding because in case the plaintiff loses the case, the lending company does not have remedy to collect payment.

Lawsuit advances can be available for cases such as personal injury, class action or product liability and wrongful death. The lawsuit money is also available for malpractice, breach of contract, worker’s compensation and medical bills.

If the lawsuit is in the nature of commercial disputes and or intellectual property disputes, the plaintiff is also entitled to lawsuit funding. For the attorneys who are handling cases, they also qualified to have pre-settlement cash advance. These advances can be used for attorney’s fees, expert witness testimony, or expert witness research.

After the case is settled in favor of the …show more content…

In addition, such financial program is exempted from certain usury laws. The lender can earn profits by charging an upfront fee in lending the money to you.

Relative to the policy, a lender or financial institution may charge you monthly fees just like a creditor’s financing fee for the right to the money. There are cases in which the lawyers themselves are the lenders.

If such is the case for you, it is advisable never to engage your attorney into providing lawsuit funding as it may create a legally unacceptable conflict of interest between you and your attorney.

To apply for settlement funding, you should be represented by your lawyer. This is the first requirement. The financial institutions that offer such financial program need to speak to your lawyer about the case he is handling in your representation.

Among the information the lender/lender needs are the court date, all necessary documents related to your case. There should also be a proof of valid claim, which can be a signed or verified presence in the court for such

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