Case Delays and Lawsuit Funding

How to Case Delays Affect Lawsuit Funding

Lawsuit timelines are unpredictable. Many plaintiffs hope for a speedy resolution, but the reality is that case delays are common — and they can create financial stress. This is the primary reason why plaintiffs often turn to lawsuit loans for relief. Case delays can also affect lawsuit funding in some predicable delays. In this post, we explore case delays and lawsuit funding. Understanding the connection between case delays and lawsuit funding can help shed some light upon these specialty financial transactions.

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Lawsuit Funding Basics

Also known as lawsuit or settlement loans, lawsuit funding describes financial transactions where plaintiffs sell a portion of their future recovery to a lawsuit funding enterprise. These funders provide immediate cash in exchange for repayment at the time of disbursement. Lawsuit funding costs vary, but payoffs depend upon the lawsuit’s duration. Thus, case delays can impact repayment amounts.

Generally, the parties calculate payoffs in six (6) month increments. That is, lawsuit loan rates are applied to contract amounts every six months. The payoff increases accordingly. Any case delays necessarily mean plaintiffs “owe” more to funders as time passes. To be sure, case delays can affect lawsuit funding.

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Why Do Lawsuits Take Longer Than Expected?

There are several reasons cases might take longer than originally anticipated. Legal system delays are part of the process and may result from:

• Court Backlogs – Many court systems are overwhelmed with cases, especially in the wake of pandemic-related slowdowns. This can lead to months of delay just to get a trial date.
• Discovery Process – The discovery phase—where both sides exchange evidence—can drag on, especially in complex cases with lots of documents, expert witnesses, or depositions. This is especially true with medical malpractice and mass tort lawsuits.
• Legal Maneuvering – Defense attorneys often file motions to dismiss, delay, or limit evidence. These tactics are the rule, not the exception and can significantly stretch the timeline.
• Settlement Negotiations – Even if a case likely to settle without formal proceedings, negotiations can still take time. Each side may make several offers and counter offers before reaching an agreement.
• Unexpected Complications – New evidence, changes in the law, or even scheduling conflicts with attorneys or judges can also slow things down.

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How Case Delays Affect Lawsuit Funding

Plaintiffs turn to lawsuit funding to help them stay afloat financially while waiting for their cases to resolve. Remember however, case delays and lawsuit funding payoffs are closely tied together. Here’s how delays might affect a funding situation:

Accrued Costs

Lawsuit loans are typically structured with monthly fees or interest. The longer your case takes, the more these fees can add up. While the funding is non-recourse (meaning you don’t repay if you lose your case), a delayed win means a smaller portion of your settlement could be left after repayment.

Additional Funding Requests

If your case drags on, your original lawsuit loan may no longer be enough to cover your expenses. Some lenders allow for additional rounds of funding, but this also increases the amount you owe later.

Multiple lawsuit loans are normally possible but if delays raise concerns about a case’s viability, it might affect eligibility for additional funds.

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Case Delays and Lawsuit Funding – What You Can Do

Above, we examined what effect case delays can have on lawsuit funding. If you face case delays and lawsuit funding concerns, consider the following:

• Stay in Touch with Your Attorney – Regular updates can help you understand the timeline and any upcoming events in your case.
• Ask Questions About Funding Terms – Before accepting a lawsuit loan, make sure you understand how interest or fees accrue over time.
• Communicate with Your Funder – Let your funding provider know if your case is delayed. They might be able to work with you or offer additional options.
• Budget Carefully – Plan your expenses conservatively, assuming the case could take longer than projected.

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Takeaways

Lawsuit delays can be frustrating but they’re not uncommon. They can significantly impact your financial strategy, especially if you’re relying on legal funding to make ends meet. By understanding the relationship between case delays and lawsuit funding, you’ll be better prepared to manage your expectations and your money as your case moves forward.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

• Simple and Easy Process – Approval only on the strength of your case.
• Risk – Free Proposition – Only repay if you win your case.
• Rapid Approval and Funding – Approvals often within 24 hrs.
• Up Front Pricing – Absolutely no hidden fees.

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