What Happens When It’s Time to Disburse Funds?

Much is written about what goes on during a civil lawsuit. Topics such as investigation, litigation and settlement are often examined. But what about what occurs after the case is over? In this post, we examine common issues at the time of lawsuit settlement disbursement in a civil trial.

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After the Case is Resolved – The Time of Disbursement

Lawsuit settlement disbursement begins when money is received by plaintiff’s counsel and deposited in their attorney trust account. An attorney trust account is a qualified bank account where attorneys deposit client funds for safekeeping. Also known as a “client funds account” or “lawyer trust account”, there are specific trust accounting guidelines that attorneys must follow.

The lawsuit settlement is then disbursed to all claims against the proceeds. These claims include:

Attorney’s Fees

Contingency fee arrangements such as the ones typically used in personal injury lawsuits are usually the first claim against the proceeds. Depending on the state, contingency fee agreements can range from 25% to 40% of the gross settlement proceeds. Other agreements outside the personal injury realm can even be greater.

Costs

Attorneys also account for different costs that must be advanced in order to litigate the lawsuit. These can include:

• service of process fees
• investigation
• retaining expert(s)
• appearance fees for experts
• expert narrative reports
• stenographer fees
• filing fees
• and more. . .

Liens

Lawsuit settlement disbursement claims against proceeds can also be made by entities which paid money for your care or maintenance. Common liens made on personal injury settlements can include:

• Workers Compensation benefits – those injured while at work can collect worker’s compensation benefits and still pursue a third party case against the at fault party (tortfeasor). Of course, some or all of those benefits must be repaid at disbursement to prevent what is known as double recovery.
• Private insurance providers – private health insurance or automobile insurance companies may place a lien against the settlement if they cover medical treatments in some states.
• Health care providers – hospitals, clinics and doctors often receive letters of protection prior to service.
• Government Based Providers – Medicaid, Medicare and/or the Veteran’s Administration medical payments may also be subject to an asserted lien. These are priority liens and must be repaid if requested.

Other Claims Payable from Lawsuit Settlement Disbursement

In addition to liens derived from medical treatment or other benefits, additional claims can be made against settlement proceeds. Claims of this nature might include:

• Back Child Support – courts consider past due child support a priority. If plaintiffs are behind on their child support obligations, you can expect the settlement will be encumbered accordingly.
• Tax Liens – governments love taxes and non-payment can lead to dire consequences. Tax liens are a common claim against lawsuit proceeds.
• Lawsuit Loans – plaintiffs sometimes sell a portion of their settlement ahead of time. Because of this, lawsuit loans are a claim against settlement proceeds which must be repaid before plaintiffs receive their share.

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Lawsuit Settlement Disbursement – What to Expect

Actual lawsuit settlement disbursement occurs when the law firm writes checks and sends them to the parties holding a claim on the settlement proceeds.  Generally, payment to plaintiffs themselves will be accompanied by a what is known as a disbursement sheet.  This lawsuit settlement disbursement letter will outline the accounting involved and itemize all amounts of money allotted to attorney fees and costs, letters of protection, lawsuit funding, taxes, child support, etc.  These items are deducted from the total and the remainder is sent to the plaintiff. 

The purpose of the lawsuit settlement disbursement letter is to remind the plaintiff of how the settlement was distributed and explain why each claim had to be satisfied.  Any questions can then be directed to the law firm for clarification. 

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Conclusions Regarding Lawsuit Settlement Disbursement

This post endeavored to identify common potential claims against the settlement proceeds of a civil lawsuit.  Although each case is different, some types of claims are common.  We’ve identified some of these herein.

As always, any questions regarding liens generally and lien priority should be directed to your counsel.  Obviously, if you need legal advice, that is where you should look.  Nothing herein should be regarded as legal advice to you personally or in general.

Thank you for your interest in what happens at the time of lawsuit settlement disbursement.

Litigation Finance – 60 Minutes Piece Reaction

A recent 60 Minutes “news” show did a piece on litigation funding entitled, “Litigation Funding”. In this post, we will go into the details of the piece, how it was presented, and give our own account of the lawsuit funding business.

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Litigation Funding Need

Lawsuit funding is the advancing of money to litigants (mostly plaintiffs) in anticipation of a successful recovery. These are specialty finance transactions where a ‘lawsuit lender’ advances money, plaintiff pledges a portion of the recovery, and the advance is repaid with that recovery.

Lawsuit funding occurs informally in some jurisdictions where attorneys are allowed to advance their clients money prior to settlement. Clients may be strapped for cash and their counsel, knowing the likely success of a particular case, “lends” their financial support. When the case is resolved, the money is reimbursed and everyone is happy. It is important to note that charging of interest for this transaction is prohibited in most, if not all circumstances.

To be clear, most states have ethical rules that prohibits attorneys from advancing money to clients. This rule exists to prevent aggressive attorneys from indirectly paying for clients by providing financial assistance.

Clients still need money, and the lawsuit funding business fills this need.

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The 60 Minutes Story

The story begins with a little bit about the business and then sets the table with this:

Litigation funding can help in cases where otherwise the little guy who’s suing would just get crushed or lowballed by defendants with deep pockets. Problem is – this market is exploding with nearly no rules or oversight. 

By Lesley Stahl
December 18, 2022 / 7:36 PM / CBS News

Based upon that statement, it became immediately clear the purpose of the story was to make a case for regulation.

60 Minutes does a good job at appearing impartial because they begin with a success story involving Craig Underwood, a pepper farmer in Ventura County, California. Underwood used to sell exclusively to a Sriracha pepper sauce manufacturer which abruptly ended their business relationship. He filed a lawsuit to protect his rights under their contractual agreement.

While the case progressed, Underwood was facing the loss of his farm. “With nowhere else to turn”, the story goes, he contacted Burford Capital, a litigation finance company. Burford supported the farmer and advanced $4 million to him while he waited for the legal process to conclude.

Ultimately, Underwood paid $8 million back to Burford. When Leslie Stahl asked whether he thought paying 100% on his money was predatory lending, he did not take the bait. Instead, he responded:

Some people might think that. I didn’t feel that way. ‘Cause they stepped in and helped us out when we couldn’t have gotten money from anybody else. They basically rescued us.

The Underwood example is exact reason for litigation finance. A struggling individual or entity secures a lifeline that would otherwise be unavailable. The money saved his family business.

Near the end of the segment, 60 minutes, perhaps looking for some tension for the story, suggests litigation investors are in a position to force plaintiffs to settle their case. When asked specifically about this, Burford Capital president, Christopher Bogart denied they exert any pressure on their clients to handle their cases in any particular way.

In response, Maya Steinitz, a law professor at the University of Iowa, suggests it is simply human nature to pressure clients and attorneys into making legal decisions. Of course, there already ARE ethics rules in place making sure attorneys solely abide by the wishes of their clients. It is unclear how more rules (regulation) would negate human nature.

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Second Story Finishes the Argument

The second story is an example of lawsuit funding gone wrong. It was also the basis of a lawsuit filed against RD Legal Funding, a lawsuit funding business which was advancing pre-settlement cash to 9/11 first responder victims. Former New York police officer Donald Sefcik received funds from RD Legal and wound up paying back 150% on the advance.

Sefcik says the contract was confusing and he was taken advantage of. Maybe he was. Not knowing the exact contract language, we cannot speak to this point but NY Attorney General’s “best practices” recommendations require disclosure of the actual payoff amounts and how they are calculated. These best practices suggestions are meant to be guidance for lawsuit funding companies. Sefcik was a New Yorker. It is likely the contract had these disclosures.

Finally and not surprisingly, Maya Steinitz then gives her opinion the industry should be regulated. She doesn’t explain why but she doesn’t really need to. An expert thinks the business should be regulated – cut to commercial.

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Creating a Problem Where None Really Exists

Using the Sefcik case as an example, 60 minutes tries to frame the situation as a problem. The Sefcik example is not an accurate depiction of the lawsuit funding business because it is not a typical candidate for lawsuit funding. Instead, the vast majority of plaintiff funding involves personal injury insurance claims that have not yet been paid. Injured litigants, sometimes unable to work due to their condition, need an influx of cash to pay expenses, medical treatment or any other need.

9/11 compensation cases were less risky as an investment because they were backed by the US Treasury. That’s probably accurate. It is also accurate that these types of cases represent a tiny fraction of the plaintiff funding market. Most cases require the managing of additional risk. This might include one or more of the following:

• the potential for misinformation
• unforeseen liability issues
• previously undisclosed prior medical conditions
• bankruptcy issues
• tax lien encumbrances
• insurance coverage issues
• and more. . .

Pointing to the exception (that the claim is backed by the Federal Government) rather than the norm (suing private parties and their insurers) creates the appearance of a problem where none actually exists. The free exchange of individuals (market) sets the pricing. Below, we look a little deeper into regulation and lawsuit loan cost.

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Regulation and Non-Essential Services (Lawsuit Funding)

Regulating certain activities protects the public at an acceptable cost.  For example, requiring a license to drive a car provides safety on the roads by testing both a driver’s ability and knowledge. The protection is measurable and the cost (training and maintenance) is minimal.

When regulating businesses (as opposed to people), the needs of the public are also served. Consider regulating electricity production by a power company.  The service provides a general public need because everyone uses electricity. 

For an electric company, maximizing profits might mean holding customers (public) hostage by threatening a service interruption.  This would be unacceptable. Thus, government regulates the industry by mandating specific rules for pricing, safety, etc.  In return, the utility is allowed a monopoly for the production of electricity in a certain area.  The public is protected from price gouging and the utility protected from competition.  Both parties win in this scenario.

Again, the reason for regulation is to prevent the power company from having too much power over the public. Pricing is an important issue because parties have no other option for the product or service. The public has an interest in making sure the pricing does not get out of hand. Allowing one entity have this much power is ripe for abuse and against the public good. This makes sense. But it is only this clear when dealing with ESSENTIAL services.

Non-Essential Services (Lawsuit Loans)

For non-essential services, analyzing the need for regulation becomes more difficult. 

Lawsuit loans may seem essential for litigants in financial trouble, but they can hardly be characterized as “essential”.  Critics thus need another reason for regulation. That reason is usually framed in “fairness”.

Regulation because something is “unfair” gets a little tricky. Who gets to determine what is fair?  Do we listen to who is in the best position to decide or do we listen to anyone who cares to comment?  Let us analyze the pricing (fairness) issue in this regard.

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Lawsuit Loan Pricing Argument and Effect on the Legal System

The 60 minutes story suggests lawsuit loan terms can be oppressive. However, as mentioned above, there should be a compelling reason to protect individuals entering into lawsuit loan transactions.  Ideally, the reason should show the product or service is a necessity and the cost to consumers would be unfair without the regulation.

Lawsuit Funding – a Necessity?

Litigation finance is specialty finance.  The industry serves litigants and only those who need immediate financial support. Plaintiffs are not forced to enter into these transactions.  Unlike electric power, plaintiffs can simply pass on the opportunity. All other sources of capital are still available to plaintiffs. These might include:

• home equity loans
• personal loans from friends and family
• bank loans
• credit card cash advances, etc.

Although many plaintiffs enter into a lawsuit loan agreement only after examining other options, critics cannot accurately state lawsuit funding clients have no choice.  Clients could sell almost ANY of their possessions for cash. A portion of future lawsuit proceeds is just one such possession.

In other words, lawsuit funding companies do NOT hold a monopoly on purchasing assets.  People buy and sell all types of assets every day.  Litigation finance companies simply specialize in the purchase of a special type of asset.

Comparing Costs

Assuming there is a need for regulation, the argument in favor of regulation still should make sense. This news story compares relative cost by mentioning car loans. But comparing lawsuit funding to car loans is misleading since the two products are completely different. The story even concedes this. They make the comparison anyway but wind up missing the point entirely.

The point is: there is a legitimate need in the marketplace and that need is being filled by willing participants. Logically, the discussion should end there. Pricing is set by the market as competition determines what funders are willing to accept as payment for their services. In fact, the cost of lawsuit funding has actually decreased over the years as market participants attempt to secure more clients. This was left out of the story.

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Litigation Finance Regulation

Like it or not, it seems that regulation is on its way. Complying with regulations can be a costly affair for businesses. This additional cost must be passed along to the consumer. Below, we examine the issue of regulation in its proper context.

Current Lawsuit Funding Market

Lawsuit funding, if not prohibited by state law, is largely unregulated. But some states do regulate the practice. In the unregulated markets, participants (plaintiffs and lawsuit “lenders”) negotiate their own terms. Remember, lawsuit funding contracts are not loans. They are non-recourse transactions structured as asset purchase agreements, giving the purchaser a partial interest in the future proceeds of the lawsuit or claim.

Although pricing can vary, competition has drastically reduced pricing from almost 100% per year to under 36% in the last several years.  Because the market is unregulated, the funders are able to fund riskier cases such as medical malpractice and large mass tort claims. They can change the pricing to reflect the additional risk.

Regulating Price and Fees

Most settlement funding regulation efforts recommend setting limits upon what a lawsuit funding company can charge its clients.  Certain states cap the “rate” at 36% per year for plaintiff funding. Most existing regulation limits the amount of processing fees that can be charged at closing.

At first blush, the pricing seems fair.  After all, this is the current competitive price level anyway. By comparison, credit cards charge a similar rate for introductory offers. And by limiting lawsuit funding contract amounts, there should be plenty of settlement money left for the plaintiff after everyone is paid/repaid.  Everyone is happy.

Not Everyone Wins

Price caps will likely help existing lawsuit funding operations who already have access to cheaper pools of money. Companies with higher cost of capital would not be able to secure a large enough return to stay in the business. This limits competition. Ultimately, only a few larger players would remain. Those that remain will have the luxury of funding only the best cases.

The losers are mostly likely the ones regulation is trying to protect. They are the plaintiffs whose cases do not fit into the funding models of the remaining companies. This means many plaintiffs, who nonetheless face severe injuries and are unable to earn a living, will be shut out of the relief they desperately need.

Most lawsuit funding investments that are lost are total losses. If companies cannot charge enough to overcome these losses, they will simply decline the investment opportunity. Lawsuit funding for products’ liability, medical and legal malpractice cases will lessen since they are more risky by nature. In the unregulated marketplace, investors fund these cases and adjust the pricing to offset the risk.

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What to Take from the Story

There’s an old saying: “Whatever message you receive, someone paid for you to hear it.” When a mainstream news program pushes for regulation, you can be sure there are forces behind the scenes promoting it.

Unfortunately, the solution offered will result in more harm than good as free market participants (customers) benefit from flexibility an unregulated marketplace provides. The ability to craft lawsuit funding deals in creative ways allows both plaintiffs and funders the ability to serve their own needs.  Hampering creativity with regulation prohibits otherwise willing participants from solutions which would otherwise be available.

And that’s the real problem, settlement funding regulation actually hurts many of the people (consumers) it tries to protect.  Inflexible pricing shuts out many litigants who need cash now but whose cases do not fit into a predetermined box.  Unfortunately, the consumer always gets the raw end of the deal.

Thank you for your interest in lawsuit funding.

The Questions Lawsuit Loan Underwriters Ask

Lawsuit loan underwriters are tasked to perform a variety of functions for lawsuit funding companies. In this post, we explore what lawsuit underwriters do for the business and what types of questions they might ask your attorney when discussing your case.

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Lawsuit Loan Underwriters – Identity, Role and Function

A lawsuit loan underwriter is a very important part of the lawsuit funding process. Their job as legal loan underwriters is to assess the likelihood of success of a particular case. They are normally attorneys, paralegals or former insurance professionals.

Since lawsuit loan investments are all or nothing investments, a determination must be made that the lawsuit has a high probability of success. In fact, lawsuit funding companies are looking for “slam dunk” cases which are essentially insurance claims that have not yet been paid.

Of course, this is not to say that some investments are not lost. All lawsuit funding companies lose cases for a variety of reasons. Most have nothing to do with a lawsuit funding underwriter’s ability to evaluate the case.

Lawsuit Loan Underwriters Assess Risk

The lawsuit loan underwriter’s job is essentially to assess the risk that a particular lawsuit will prevail. Their job is a tricky one because to properly analyze a lawsuit for funding, underwriters need information. And in some instances, only limited information is available. That information typically usually includes the following:

• Information about the incident in question
• Information about the damages suffered
• Information about the defendant’s ability to pay a settlement or judgement

Since this is the “nuts and bolts” of a case, underwriters need documents supporting the plaintiff’s claims. For simple auto accident lawsuit loans, the underwriter will want to see the police report, medical records, lost wage information, and insurance information. For a medical malpractice lawsuit loan, the underwriter wants to consider the medical records, insurance information and medical experts needed to prove liability.

Lawsuit Loan Underwriters Estimate Settlement Value

The estimated settlement value of a case is of primary importance to a lawsuit funding company. As a general rule, lawsuit loan enterprises will approve up to 10%-12% of the estimated settlement value of the case as a cash advance. Other factors do apply when establishing a settlement approval amount. These might include the case’s venue or where in the litigation process the case currently resides.

Underwriters Adjust Rates

Lawsuit loan rates are usually set ahead of time by lawsuit funding companies. If, after evaluation by an underwriter, the case falls into their risk profiles, the client is offered the advance at those rates.

Other companies take a more flexible approach and adjust lawsuit loan rates according to the riskiness of each individual lawsuit. For example, since medical malpractice cases are generally lost more than won, a lawsuit funding company might only want to invest in these cases if they get a better return. Other case types, such as commercial litigation cases often include flexible rates structures.

Lawsuit loan underwriters therefore can adjust rates higher to capture a greater potential return or lower, if the particular case looks particularly strong.

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Attorney Conversation is Essential to the Process

Probably the most important aspect of the underwriting process is the conference, often by phone, with plaintiff’s attorney. Why is this necessary? Let’s take a look.

The majority of lawsuit loans involve attorneys who are hired on a contingency fee basis. That is, they are paid only if the case is successful. Because of this, attorneys are selective of what cases they choose to work on. For more information on this topic, read “Personal Injury Clients – You Should Know How Your Lawyer Thinks”. Generally, attorneys only want to work on cases that make them money. They want the slam dunks, the rear-end auto accident cases with catastrophic injuries. They want to win 9 times out of 10.

Depending on the type of case, attorneys might be more tolerant of losses. For example, it is widely known that med mal lawsuits are lost more often than they are won. Yet, medical malpractice attorneys still make a living. This is because the settlement value of the cases they win greatly outweigh the costs of running the business, including pursuing cases that are ultimately lost. The expectancy of wins vs. losses justifies the effort.

All of this to say that attorneys are sometimes very optimistic about a case and they are eager to tell you about it. Other times they are not as optimistic but are reluctant to share that sentiment.

This is why the best lawsuit funding companies choose legal professionals as lawsuit loan underwriters. Through their expertise, they can sift through the information given to them during the conversation and apply it to the task at hand – figuring if a case is worth the investment.

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Common Lawsuit Loan Underwriter Questions

Ultimately, lawsuit loan underwriters are only as good as the questions they ask. Some common questions might include:

• insurance coverage issues
• the amount of liens on the file
• if there were pre-existing conditions
• whether there were prior accidents or similar incidents
• notice requirements
• if the case is in suit (complaint filed in court)
• whether discovery is concluded
• whether a demand was made
• if defendant made an offer
• if there are expert reports
• loss wage claims
• loss of earning capacity
• a discussion of any statute of limitation issues
• any expected problems with causation
• an estimated settlement value of the case

This list can go on and on, depending upon the answers to the previous questions. Most lawsuit funding underwriter conferences last less than 5 minutes. Some much longer. The general idea is to understand what issues exist that might cause plaintiff to lose and what type of settlement offer is to be expected.

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Lawsuit Loan Underwriting is an Art

As you might suspect, lawsuit funding underwriting is not an exact science. Each underwriter has unique experiences and understanding which are brought into the process. Some might have more experience in certain areas than others. The best lawsuit funding companies employ the services of multiple underwriters on their team. The more “experts” that can weigh in, the better the chances an investment will yield a return.

And that’s the point exactly.

Thank you for your interest in lawsuit funding underwriters and the lawsuit loan business.

Getting Pre-Qualified for a Lawsuit Loan is the First Step Toward Funding

What does it mean to be pre-qualified for a lawsuit loan? Pre-qualification for lawsuit loans is the result of a lawsuit loan applicant’s initial contact with a lawsuit loan representative from Fair Rate Funding. In this post, we discuss the process of pre-qualification and what factors must be present to continue with the lawsuit loan approval process.

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What are Lawsuit Loans?

Whether a slip and fall, auto accident, or other lawsuit loan case type, personal injury plaintiffs face an uphill battle with their injuries. Adding to the problems is the time it takes for their claims/lawsuits to pass through the legal system.

Personal injury cases can take many months or even years to ultimately resolve. Meanwhile, bills and other expenses continue on leaving many plaintiffs struggling financially. Unfortunately, many are forced to accept low-ball settlement offers to ease their burdens. Lawsuit loans for can be a solution.

Lawsuit loans are specialty finance transactions where a lawsuit funding company advances money in anticipation of a favorable settlement in civil court.  The term lawsuit funding is also known as lawsuit loans, settlement loans, or case loans. 

Although the term “loan” is often used to describe these transactions, lawsuit funding arrangements are not loans. Instead, they are a purchase of a portion of the future settlement. As such, they are not repaid if the plaintiff loses the case. Lawsuit loans are thus “non-recourse” because the funding company cannot pursue the plaintiff personally for repayment. Repayment must come from the proceeds of the lawsuit, if at all.

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Lawsuit Loan Application Steps

The process for applying for a lawsuit loan is simple and straightforward.

• Fill out the Quick Application on this web page.
• We will contact you the same day to discuss your case.

Once contacted, plaintiffs are informed regarding how the process works, what it costs, and what is expected of them. If we think that we can possibly help and you want to continue with the process, we mark your case as “pre-qualified” and the matter is sent for processing.

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What Criteria Must be Met for Pre-Qualification?

The criteria for pre-qualification are that you must:

1. Have a valid claim/lawsuit
2. Be at least 18 years old
3. Be represented by an attorney
4. Your attorney is only paid if the case is successful

In truth, most applicants who contact us are pre-qualified. In most circumstances, the only reasons for ending the process after the initial consultation would be if:

• you were previously funded and there is no more room for additional advances
• your state prohibits lawsuit loans
• your attorney will not cooperate with funding companies

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What Does Pre-Qualified Mean with Lawsuit Loans?

Pre-qualified for a lawsuit loan means the lawsuit loan company is willing to use its resources to pursue the application further.

The next steps include compiling paperwork from the attorney’s office and reviewing it. From there a lawsuit funding underwriter will normally speak to the attorney handling the file and discuss the case. Lawsuit loan underwriters will ask the attorney a host of questions designed to give the company a better understanding of the investment.

Lawsuit funding companies generally want to know how far along the case is in the process, whether there are motions pending before the court and the attorney’s expectations for settlement.

Although pre-qualified for a lawsuit loan is not the end of the process, it is a necessary first step.

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What is Next in the Lawsuit Funding Process?

The lawsuit funding process is fairly simple.

1. Fill out the Quick Application on this web page.
2. We will contact you the same day to discuss your case.
3. With your approval, we will discuss your case with your attorney.
4. If your case is approved for a cash advance, we will immediately prepare a document for your signature.
5. Once the documents are executed, we advance you cash for your case via overnight courier or electronic bank transfer.
6. When your case is won, your attorney repays the amount pursuant to the terms of our agreement.

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How to Get Started

We provide funding solutions for a great deal of case types. Simply complete the application form or call us at 888-964-2224 to see if you qualify. The call is free, application is free and there is absolutely no obligation.

Trip and fall lawsuit loans help injured plaintiffs with immediate access to cash prior to settlement. Every year, millions of personal injury plaintiffs, who were injured from a slip and fall incident, file lawsuits in the American court system.

In this post, we examine the different types of fall accidents and how those differences affect liability under state negligence laws. We also discuss how liability issues enter into lawsuit loan underwriting decisions.

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Fall Cases are Based in Negligence

Negligence lawsuits arise when one party owes a duty of care to another, that duty was breached in some way and the breach resulted in damages.  Negligence is society’s safety net for those injured through no fault of their own.  Those who owe this duty of care to others often use insurance policies to mitigate this risk.

A common example is an automobile accident.  All motorists owe a duty to the other drivers to follow the rules of the road, obey traffic signals, remain sober and attentive, etc.  Because accidents can and do happen, motorists purchase auto insurance policies to protect injured parties but also themselves from liability. 

Fall cases are also usually insured because certain parties owe a duty of care to other for safe pedestrian travel on walkways, aisles, and other avenues of movement. Trip and slip and fall lawsuits arise naturally from these societal relationships.

Although slip and falls and trip and falls are both based in negligence, there are some differences. Below, we discuss a few.

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Slip vs. Trip and Fall Cases

“Tripping” means the falling forward because you:

• stepped on something slippery or something that made you lose your balance
• got your foot/leg caught on an object or stuck in an object
• failed to step all the way over an obstacle that was fixed

“Slipping” generally means falling backward because you:

• stepped upon a slippery surface
• stepped upon shifting ground such as loose pavement, etc.

While the difference might not mean much at first glance, there are significant differences. For example, tripping usually results in the front parts of the body being injured. These might include knees, wrists, hands, face, arms.

Slipping might also include arm injuries but most likely would also include back and hip injuries, and injuries to the back of the head, concussions, etc.

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Trip and Fall Examples

• A drain pipe is exposed through a portion of the sidewalk as a result of sloppy masonry work. A passerby trips over the pipe and falls on his face resulting in a broken nose and scrapes. The victim breaks his wrist attempting to break his fall.
• An grocery store owner leaves a half stock pallet of product in the aisle unattended by any employees. A customer fails to step over the obstacle and trips over the product injuring his arm and left knee.
• A landlord is repairing a walkway to the apartment units but the repair remains unfinished. Loose concrete causes an invitee to loose his footing and fall. His knee and wrists are injured as a result.

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Slip and Fall Examples

• An ice storm results in an inch thick sheet of ice in front of a department store. After 24 hours, the area is still not salted or otherwise made safe. A customer falls on the ice backwards and breaks her tailbone.
• Ketchup is spilled in an aisle at the grocery store. Over 30 minutes pass and the spill is not cleaned by an employee or other worker. A customer is looking up to browse the shelved products and slips on the ketchup. The fall causes severe low back pain. MRI’s show a herniated disk in the lumbar region.

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Why are the Differences Important?

The difference between trip and fall and slip and fall cases can be important because a recovery is often the result of seemingly minute details. For example, a trip and fall can occur on a temporary condition or on a condition that has been in that state for days, months or even years.

The condition’s duration may be important when the injured plaintiff is trying to prove the notice requirement under the law. That is, in proving liability, the plaintiff must demonstrate the premises owner had actual or constructive notice of the dangerous condition. Constructive notice means the owner should have known of the condition.

For example, the spilled ketchup in the grocery store aisle, which was there for over 30 minutes could meet the notice requirement if a jury decides 30 minutes was enough time for a grocery store to notice and remedy the condition. Conversely, if the spill just occurred seconds before the fall, plaintiff would have a much more difficult time proving constructive notice.

As a general (not absolute) rule, slip and falls occur on more temporary conditions such as ice, or spills. Trip and falls occur on more static hazards such as structures in disrepair or deteriorating conditions.

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Slip and Fall and Trip and Falls – Using Lawsuit Funding

Whether a slip or trip and fall, plaintiffs face an uphill battle with their cases. Personal injury cases take time and injured victims can expect many months or years to pass before they are compensated.

Meanwhile, bills and other expenses keep piling up. Many plaintiffs can find themselves unable to make ends meet while their case progresses. Worse, many are forced to accept low ball settlement offers just to ease the financial strain. Lawsuit loans for fall cases can be a solution.

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What is a Trip and Fall Lawsuit Funding?

Trip and fall lawsuit loans are financial transactions where a lawsuit lender advances money to a trip and fall plaintiff prior to settlement. The plaintiff in return, pledges a portion of the settlement to the funding company.

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Lawsuit Loans are Non-recourse

Lawsuit loans are specialty financial instruments which differ from traditional loans. While traditional loans imply repayment under all circumstances and at some point in the future, lawsuit loans for trip and fall lawsuits, are only repaid if the case is successful. Because of this, lawsuit loans are non-recourse funding.

Non recourse funding means the funding company cannot pursue the plaintiff personally for repayment. The sole source of repayment must come from the lawsuit. The unique nature of these financial instruments means that credit history or employment status is irrelevant.

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How to Get a Trip and Fall Lawsuit Loan

To get started with a trip and fall lawsuit loan, simply give us a call at 888-964-2224 or Apply Now. One of our representatives will contact you and discuss your funding options. You are under no obligation and the call is FREE.

Thank you for your interest in trip and fall lawsuit loans.

In both tort and criminal law, strict liability is when a defendant is liable for committing an action/inaction, regardless of intent. In criminal law, possession crimes and statutory rape are both examples of strict liability offenses. In civil cases, strict liability usually applies to product liability actions, dog bite cases and abnormally dangerous activities.

The majority of strict liability cases seen for consideration on lawsuit loan applications are for product liability and dog bite lawsuits. We will focus on those in this post.

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Strict Liability for Manufacturing Defects

Most state product liability laws provide for those injured due to defectively manufactured products. These laws impose strict liability on manufacturers for defective products.

In normal negligence cases, plaintiffs must show the defendants failed to use care or were reckless in their actions. In product liability actions for manufacturing defects (as opposed to design defects), plaintiffs need not prove a breach of the duty of care. Plaintiffs can still recover damages regardless of whether the manufacturer used care.

Under most strict liability state laws, plaintiffs must only show there was a defect and that the defect caused their damages. Keep in mind not only purchasers of the product are protected. Bystanders or other victims can also sue under the strict liability standard.

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Strict Liability for Dog Bite Cases

Many states use the strict liability standard for dog bite lawsuits. The idea is that pet owners have a duty to restrain their dogs from hurting other people. While some dog bite lawsuits use the strict liability standard, others require the dog owner have actual or constructive knowledge of the dog’s propensity to bite humans.

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Strict Liability Only Proves One Aspect of a Winning Case

It is important to remember that strict liability only proves liability. Other aspects of the lawsuit are required for a successful outcome.

For example, simply because a duty of care was breached is not enough to pursue a case in negligence. There also must be damages caused by the liability. Just because there was a manufacturing defect doesn’t mean someone was injured. Likewise, minor injuries from an aggressive canine might also fall short. Obviously, there must be actual damages for a case to continue.

Finally, the defendant’s ability to pay the damages is another key ingredient. If there is liability and there are damages, the defendant must have sufficient funding (insurance coverage, assets, etc.) to cover the damages caused.

Again, the three basic ingredients as far as strict liability cases are concerned are:

1. Action/inaction or a design defect that is covered by a strict liability statute
2. Actual damages caused (actual or proximate)
3. The defendant’s ability to compensation the plaintiff

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Defenses to Strict Liability

Common defenses to claims of strict liability are assumption of risk, statute of limitations, and others. Assumption of risk is a legal concept which may absolve a defendant from liability. It places the burden of proof on the the defendant to show the plaintiff knew of the risk and voluntarily assumed that risk. An example might be a defective product where warnings are present and understood by the plaintiff.

Statute of limitations requires a lawsuit be brought within a specific period of time after the harm was caused. This defense is designed to limit lawsuits long afterwards so as to avoid unnecessary prejudice against the defendant(s)’ ability to defend a case.

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What Does This Have to Do With Lawsuit Loans?

Lawsuit loans are financial transactions where money is advanced to plaintiffs prior to settlement. In return, plaintiffs pledge a portion of the settlement proceeds if the case is successful.

Lawsuit loans generally apply to civil lawsuits where there is an injured party. Strict liability standards apply to “fundable” cases such as dog bite lawsuit loans and product liability lawsuit loans.

In this post, we attempt to give a bit of background about the strict liability standard. If you have been injured and need to learn more about strict liability, please consult with an attorney in your jurisdiction who specializes in this specific area. They will be most able to help clarify any questions you may have and advise you accordingly.

Thank you for your interest in Fair Rate Funding.

Car accidents occur every day. It is simply an unfortunate aspect of travel in passenger cars and trucks. Injured car passengers confront economic and non-economic (pain and suffering) damages. Obviously, for those injured in car accidents, challenges await. Car accident passenger lawsuit loans can help.

For example, injuries require medical attention, even if only to figure out the severity of the condition. Motor vehicle accident victims such as passengers are entitled to seek financial recovery against the at-fault party. That’s the good news.

The bad news is that recovery takes time – often years. During this time, injured car passengers still must pay their bills. Regular living expenses and medical bills can pile up.

Back to the good news. If you are a car passenger, you can seek a car passenger lawsuit loan to help pay your expenses while you wait for your case to settle. Car passenger lawsuit loans are specialty financial products which offer an economic lifeline to those injured while traveling as a passenger in a car.

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What is a Car Accident Lawsuit Loan?

A car passenger lawsuit loan is when an injured car accident lawsuit plaintiff pledges a portion of a future settlement to a lawsuit loan company, like Fair Rate Funding. The lawsuit loan business advances money to car passenger plaintiffs to help pay expense such as:

• daily living expenses
• medical treatment
• property damage
• and a host of others.

In fact, there are no restrictions on the use of car accident passenger lawsuit loans. After all, it’s your money.

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Why are Passengers Good Candidates for Passenger Accident Lawsuit Loans?

Car accident passengers are great candidates for lawsuit loans because liability is easy to establish. Negligence cases require a party to be “at fault” for the accident. Injured passengers are almost always NOT at fault in causing the accident simply because they are not in control of any vehicle.

Of course, damages must also be established. Medical records such as diagnostic imaging or medical treatment are evidence of damages. So are lost wages and pain and suffering.

Because lawsuit loan repayment is usually an “all or nothing” thing, lawsuit loan companies give preference to cases where liability is clearly established. That’s why passenger lawsuit loans are good risks for funding companies.

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What is the Lawsuit Loan Process?

Fair Rate Funding provides fast, low-cost lawsuit loans to injured car accident passengers. Our process is quick, easy and risk free. The steps are as follows:

1. Call us at 888-964-2224 or contact us 24 hours a day.
2. Once contacted, one of our representatives will reach out to you to discuss your funding options.
3. We send a request for information to your attorney and we begin processing the application.
4. Once paperwork is received and reviewed, one of our underwriters will contact your attorney’s office and briefly discuss the case.
5. You will receive an update on a daily basis from a member of our team.
6. Once approved, we send you a contract for signature.
7. When the agreement is done, we send you your advance either by electronic transfer or check via overnight delivery.
8. You receive a cash advance to use until your settlement.

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What are the Benefits of Lawsuit Loans for Car Passenger Injuries?

Car accident passengers see the value of lawsuit loans because they are:

• Quick – most are processed in a couple of days.
• Flexible – payments can be made in a lump sum or a series of payments.
• Risk Free – repayments only if you win your case.
• No monthly payments.
• You owe us nothing until your case settles.

Passenger lawsuit loans seek to level the playing field between injured car accident passengers and the financially strong insurance businesses which typically defend personal injury lawsuits. Lawsuit loans give injured passengers the financial means to endure the process. This way, they are not pressured into taking low-ball settlement offers simply because they are broke financially. With the ability to pay their bills and living expenses, lawsuit loans allow personal injury attorneys to pursue their clients’ claims properly. Litigating personal injury cases the right way ensures the maximum settlement.

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Why Choose Fair Rate Funding for a Passenger Lawsuit Loan?

Fair Rate Funding provides the lowest rates for settlement funding for passenger injury lawsuit loans and helps plaintiffs get some of the proceeds from their case immediately.

Understandably, compensation of any amount cannot make up for extensive damages or the loss of a loved one from an auto accident. But, while the case is in progress, lawsuit loans can lessen financial burdens. Without the pressure to settle, plaintiffs can refuse “low-ball” settlement offers and their attorneys have time to secure just compensation.

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How to Get an Accident Lawsuit Loan?

Fair Rate Funding lawsuit loans offer the most competitive terms in the business.  We can have cash in your hands in as little as 24 hours.  Obtaining lawsuit loans for passenger injuries is simple and straightforward. 

Simply contact us and start the lawsuit funding process.  With your permission, we will contact your attorney and go over the details of the case.  For more information about how we evaluate cases, visit the post about underwriting lawsuit loans.

Call us now on 888-964-2224 or fill out the online form to start the process.

As plaintiff advocates, Fair Rate Funding specializes in providing fast, low cost lawsuit loans to plaintiffs. The vast majority of our clients are involved in negligence cases. This post will answer the question: What is negligence law?

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Negligence Lawsuits – Background and History

A century ago Oliver Wendell Holmes, Jr., asked “what is negligence” in search of a general theory of tort. A tort is defined as a wrongful act or infringement upon another. Torts (assault, battery, intentional infliction of emotional distress) historically gave rise to liability against the wrongdoer (tortfeasor). Holmes concluded that the basis of tort liability was fault, or the failure to exercise due care. In other words, negligence is a tort, but not an intentional one.

Without intent as a prerequisite, what constitutes negligence becomes three fold:

• Did the defendant owe a duty of care?
• Was that duty of care breached?
• Was the breach the proximate cause of plaintiffs damages?

Duty of Care

A duty of care is a requirement that a person or persons act toward others and the public with “the watchfulness, attention, caution and prudence that a reasonable person in the circumstances would use.” (Law.com legal dictionary “duty of care”).

What is reasonable has been argued since negligence law first emerged. But an example might be that all automobile drivers are expected to maintain their vehicle in safe condition and operate their auto safely and in accordance with all traffic laws.

If a person’s actions do not meet this standard of care, then the acts are considered negligent, and any damages resulting may be claimed in a lawsuit for negligence.

Breach of Duty

A defendant breached the duty of care by doing or not doing something that an average person would do in similar circumstances.

For example, a jury could find negligence if it found that an average person:

• Knew everything the defendant knew at the time; and
• Would have known his/her actions could cause injury to another; and
• Would likely have done something differently than what the defendant did under the circumstances.

Judge Learned Hand created a formula to determine a breach of the duty of care. Many courts still use this formula today. It reads: If the burden of taking precautions is less than the probability of loss multiplied by the severity of that loss, then the party with the burden to take precautions will have breached the duty of care.

The Hand formula was set forth in United States v. Carroll Towing. In describing whether a vessel might break free from her moorings, the case states:

Since there are occasions when every vessel will break from her moorings, and since, if she does, she becomes a menace to those about her; the owner’s duty, as in other similar situations, to provide against resulting injuries is a function of three variables: (1) The probability that she will break away; (2) the gravity of the resulting injury, if she does; (3) the burden of adequate precautions.

Of course, this and other legal “formulas” give attorneys something to argue about. Ultimately, it will be up to a judge or jury to decide what the duty was and whether it was breached.

Causation

Causation requires a plaintiff to show the defendant’s breach of the duty of care actually caused the plaintiff’s injury and other losses.

Actual cause (aka “cause in fact”) means the action or inaction directly led to the incident. For example, a car failing to stop at a stop sign and running into another car which had the right of way was the “actual” cause of an accident.

Proximate cause is a little different because the cause of plaintiff’s damages is a little further removed from the action/inaction that breached the duty of care. Proximate cause is also known as “legal cause”. It can be defined as an action/inaction which resulted in damages that were foreseeable. The breach must be the primary cause of injury. If someone’s action(s)/inaction(s) are a remote cause of the injury, there is no proximate cause.

Damages

Damages are the final element of negligence. If a plaintiff suffered losses (injury, lost wages, loss of earning capacity, etc.) and that loss was caused by by a breach in the duty of care owed to that plaintiff, money may be the only way to compensate that individual. Obviously, no amount of money can truly compensate for permanent physical impairment. The legal system nonetheless attempts the impossible through monetary awards. Damages in negligence cases normally include:

• medical care
• lost wages
• lost earning capacity
• pain and suffering
• psychological and emotional stress
• and more…

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Negligence Cases and Practicalities

You’re reading this post because you are interested in negligence law. Perhaps you visited this site because you are researching the truth about lawsuit loans – what they are and how to obtain them. This makes sense, since the overwhelming majority of lawsuit loans are given to plaintiffs involved in negligence cases.

There are some practicalities to pursuing negligence cases. First, you will rarely see a negligence case pursued without an attorney. Although some plaintiffs access the courts pro se (without an attorney), almost all negligence accident victims are represented by counsel in court.

This make sense too, because courts allow a contingency fee retainer for these types of cases. A contingency fee retainer means plaintiff’s lawyer is able to share in the recovery. So the hiring of an attorney is a no-risk proposition for clients because there are no up-front legal fees.

Second, negligence cases involve both economic and non-economic damages for the most part. That is, plaintiffs might have suffered losses to property or lost wages. These damages are easy to quantify such as through a repair estimate or past pay check stubs.

Third, non-economic damages make up the most valuable portion of a negligence recovery. Non-economic damages are not easy to pin down. You might say this subjective nature is the reason the court system is used to decide the issue.

Experienced attorneys are particularly skilled in assessing what a jury might award if a negligence case goes to trial. Of course, these are really just guesses. Juries are made up of individuals who each bring there experiences and biases into the jury box. There is simply no way to accurately ascertain what a jury would do in a particular case.

Yet, with the sheer volume of cases in an already crowded docket, settlement remains the name of the game. Legal professionals recommend settlement because it is in everyone’s best interest.

By settling a negligence case, the amounts are known. Everyone may be disappointed in the amounts, but the case is still resolved. The insurance carrier closes its file and accounts for the loss. Plaintiff’s lawyers recapture litigation costs and generate a fee. And the plaintiff gets to move on with life compensated under the law for their injury.

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Answering the Question – What is a Negligence Case?

In this post, we posed and answered the question: What is a negligence case? We explored the definition of negligence, it’s elements and some practical aspects of this large but sophisticated area of the law.

Thank you for your interest in negligence law and Fair Rate Funding.

What is a Perfect Lawsuit Loan?

A lawsuit loan is a financial transaction where a plaintiff receives a portion of the future proceeds prior to settlement. The money is advanced by a lawsuit funding company in search of the perfect lawsuit loan. That is, the perfect case that will likely succeed and make the lawsuit loan business money.

At Fair Rate Funding, we get requests from many plaintiffs with different types of cases. In this post, we will discuss what makes a case perfect for a lawsuit loan, which case types they usually are, what are some common pitfalls and what is commonly not a “deal breaker”.

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What is a Lawsuit Loan?

The importance of this question leads to a discussion regarding the perfect lawsuit loan. This is because lawsuit loans are specialty finance transactions. They are structured not as loans (although often referred to as lawsuit loans or settlement loans) but as an assignment in the property rights of future proceeds.

The assignment allows lawsuit funders to charge “use fees” above usury rates, which limit what companies can charge for loaning money. The reason lawsuit loans are more expensive than regular loans is that they are more risky. This is true because the company “loans” money on the case itself, not to the plaintiff personally. If the case should be lost, the lawsuit advance is not repaid.

This fundamental difference between loans and lawsuit loans is the reason why lawsuit funding companies are always in search of the perfect lawsuit loan.

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What Types of Cases are Best for Legal Loans?

Fair Rate Funding provides lawsuit loans for a large variety of cases. These might include:

• Animal & Dog Bites
• Amusement Park Accidents
• Automobile Accidents
• Asbestos Cases
• Aviation Accidents
• Bicycle Accidents
• Boating Accidents
• Bus Accidents
• Construction Accidents
• Defective Products
• Maritime cases
• Medical Malpractice
• Mesothelioma
• Motorcycle Accidents
• Motor Vehicle Accidents
• Nursing Home Negligence
• Pedestrian Accidents
• Premises Liability
• and others . . .

If you have a lawsuit, an attorney and need financial support, you are eligible to apply for fast lawsuit loans as a possible solution. To get started, simply contact us or give us a call. We are here to help and are at your service.

Thank you for your interest in the most common lawsuit loans and Fair Rate Funding.

There are some prerequisites however. First, you must be represented by an attorney. Representation is important because lawyers are the people who repay the loan after a settlement is reached. This is definitely part one of a perfect lawsuit loan. No lawsuit funding is offered without representation by counsel.

Second, the attorney must be retained on a contingency fee arrangement. This means the attorney is only paid if the case is successful. Under this type of arrangement, your lawyer is essentially your partner.

When you receive lawsuit funding, the funding company becomes a partner as well, albeit a smaller one. The idea of this fee requirement is to show the lawsuit lender the attorney is committed to the case. After all, attorneys are generally reluctant to waste time on frivolous or otherwise unwinnable cases.

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What Determines a Perfect Lawsuit Loan?

Lawsuit funding companies all have their own appetite for a particular type of case. But all would undoubtedly agree that the perfect lawsuit loan is one that is easy to underwrite. Lawsuit loan underwriting is the professional assessment of the merits of a lawsuit and the possible value of any recovery. Ease in underwriting basically comes down to assessing three separate criteria. These are:

Liability

Liability in negligence cases means that the person responsible for the accident owed a duty of care (e.g. stopping at a stop sign), breached that duty (i.e. did not properly stop) and that breach was a cause (proximate) of the injuries. Liability for other types of cases (wrongful termination, discrimination, etc.) is established by statutes designed to protect people from violations.

Examples of information lawsuit funding underwriters use to assess liability might include:

• Police or incident reports
• Witness testimony
• Photos, videos or recordings
• Admissions
• Electronic or other correspondence
• A letter from an insurer admitting liability

Damages

Damages in a perfect lawsuit loan are represented by the harm the plaintiff endured by the actions/inactions of the defendant(s). Evidence that might describe damages would likely be shown by the following:

• Initial treatment records (e.g. Emergency Room or First Care Medical Records)
• Diagnostic Imaging Results (e.g. MRI’s, X-rays, CT scans)
• Surgical or other treatment records
• Medical expert’s narrative expert reports on the permanency of the condition
• Lost wage information
• Property damage evidence of out-of-pocket costs
• Life-care plans
• Psychological reports
• Vocational Expert reports (loss of earning capacity)
• And more…

Ability to Pay

The final piece of the puzzle for a perfect lawsuit loan is the defendant’s ability to pay.  Because not all defendants are wealthy, plaintiffs are sometimes successful in court but are unable to collect any compensation from the defendant.  A judgment proof defendant is of little help to injured or other plaintiffs.

Lawsuit loan underwriters are seeking the perfect lawsuit loan. And the perfect lawsuit loan requires a defendant who either has an insurance policy in place or is otherwise able to pay the damages the plaintiff seeks.

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What is the Most Common Lawsuit Loan Case Type?

By far the most common lawsuit loan case type is the car accident lawsuit loan. This is because it is very easy to ascertain liability, damages and ability to pay in these cases. Liability is normally established by a police report, witness statements, or damage to the vehicles. Sometimes video or photographs are direct evidence of liability.

Damages are more subjective because a great deal of car accident awards are based on future pain and suffering due to injuries. However, the perfect lawsuit loan client will have permanent injuries and extensive treatment. Lost wages and/or earning capacity is also used.

The vast majority of car accident loans have an automobile insurance policy in place. The perfect lawsuit loan will have ample coverage limits available to cover the plaintiff’s damages.

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How Do I Get a Perfect Lawsuit Loan?

If you were involved in a lawsuit, have an attorney and want to get cash prior to settlement, Fair Rate Funding can help you!

We work with our clients to secure advances with the best possible terms. In most instances, we act as a direct lender so whenever possible, we pass the savings along to you.

Lawsuits can cause both physical and financial hardship. If you have any questions regarding lawsuit loans, lawsuit funding, or another type of legal financing, please do not hesitate to contact us at 888-964-2224.  We are here to help you get what you need, when you need it. 

Use lawsuit loans to pay for living expenses, case costs, medical care or any other need.  When financial strain forces you to consider accepting less than you deserve, don’t wait – call Fair Rate and let us help you.

Thank you for your interest in lawsuit settlement funding.