Lawsuit Loans Get Better Settlement Offers

Higher lawsuit settlements are the goal of every plaintiff’s lawyer. Having the time to do so may not always be possible. Lawsuit loans attempt to level the playing field between litigants and insurance companies. The purpose of settlement loans is to allow plaintiffs to meet their financial needs while the lawsuit moves through the legal system. This post discusses how lawsuit loans can lead to higher lawsuit settlements for plaintiffs.

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Flaws in the Legal System

It can be argued that the United States legal system is the best system in the world. Laws based upon individual rights and fairness serve the best interests of all parties involved in civil disputes. Based in old English common law, the American civil legal process strives to resolve disputes fairly and amicably.

Speedy Trials in Civil Cases

As good as the system is, there are some flaws. One such limitation involves the time it takes for a civil case to be adjudicated.

Consider that criminal defendants have certain rights that civil litigants do not have. One such right is written in the Sixth Amendment to the United States Constitution, which reads:

In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial . . .

United States Constitution, Sixth Amendment

While the Sixth Amendment guarantees the rights of criminal defendants, including the right to a public trial without unnecessary delay, no such guarantee exists in the civil legal system. The idea is that the loss of individual liberty is so protected the courts must pursue the matter in a timely fashion. Where civil cases are decided, there is no such urgency in terms of life and/or liberty.

Only So Many Resources Available

The legal system is supported by local municipalities, counties, states and the federal government. Only the federal government can print and spend as they see fit. The remainder of these governments must tax and spend the money they collect. Accordingly, taxpayers are only willing to pay so much before they start protesting local politicians. Thus, there are finite resources available to certain public services. Adjudicating private disputes among parties is one such service.

Timing Issues Can Affect Outcomes

The net result of limited resources is a time delay in the adjudication of civil lawsuits. As society became more and more complex, more disputes naturally arose. This led to the condition known as a crowded docket. The condition persists today.

Crowded dockets essentially mean there are more cases than resources can handle. Cases are thus decided as they are filed. As a result, plaintiffs can expect many months and most likely years will elapse before their cases are heard.

Of course, there is the possibility of settlement before filing a complaint. However, more serious cases are likely to be “put in suit” because higher lawsuit settlements are at stake. Defense carriers (insurance companies) are likely to defend these cases to the end.

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Low Ball Settlement Offers Negate Higher Lawsuit Settlements

The goal of plaintiff attorneys is higher lawsuit settlements. In personal injury cases, plaintiff lawyers are paid on a contingency fee arrangement. The higher the lawsuit settlement, the larger the fee.

Plaintiffs also want higher lawsuit settlements but in many cases are unable to wait out the process. Facing financial strain, especially if they are not able to work due to injury, many are forced to accept less than fair compensation simply to meet their immediate financial needs.

Lawyers may “know” they can settle the case for more money if the matter is allowed to go through the process. The longer the case matures, the greater the risk of trial. And at trial, anything can happen.

Unfortunately, insurers and their attorneys are only too happy to allow the cases to drag on. To delay responsibility is to deny responsibility – even if it is only temporary.

In response to this situation, and in an effort to earn higher lawsuit settlements, the lawsuit loan industry began.

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Lawsuit Loans Help Plaintiffs

Lawsuit loans are specialty financial transactions where a lawsuit funding company (Fair Rate Funding) provides immediate cash to a plaintiff. In return, the plaintiff pledges a portion of the future settlement. The idea is to avoid having to accept low-ball settlement offers and have the ability to wait out the legal process. Ultimately, lawsuit loans help plaintiffs obtain higher lawsuit settlements.

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Are Lawsuit Loans Actually Loans?

Lawsuit loans differ from traditional loans in the following important respects:

First, the lawsuit recovery is the only source of repayment under a lawsuit loan agreement. That means a lawsuit “lender” cannot pursue the plaintiff personally for repayment. Second, lawsuit loans are only repaid if the case is successful. If the case is lost, the lawsuit loan is not repaid. Contrast this with a traditional loan which must be paid off in the future with interest.

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How Do Lawsuit Loans Produce Higher Lawsuit Settlement Amounts?

All insurers want to pay as little as possible for claims. It’s simply business. Part of the civil legal system ensures they don’t take it too far. How far is too far? That’s why lawyers get involved.

Lawsuit loans allow lawyers to do their jobs. They are experts in presenting information to the court and have experience of what similar fact patterns receive as compensation. Good attorneys regularly secure higher lawsuit settlements than would be available without their assistance.

As previously mentioned, the closer the case gets to trial, the more leverage on the insurer to put a fair settlement value on the file. It’s not surprising that refusing initial settlement offers results in higher lawsuit settlement amounts later on in the process.

Lawsuit loans simply give plaintiffs the ability to secure higher lawsuit settlements by allowing them to meet their immediate financial concerns while they allow their lawyers to get the best possible settlement result.

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How To Learn More

Learning about settlement funding is quick and easy. Simply fill out this submission form or give us a call at 888-964-2224. An agent will immediately contact you and will answer any questions you might have.

Thank you for your interest in higher lawsuit settlements and for choosing Fair Rate Funding.

Is It Possible to Get More Than One Settlement Loan?

Of course, the answer is that it depends. In this article we examine multiple settlement loans, how and why they occur and some limitations on the practice.

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What are Settlement Loans?

Settlement loans are financial transactions where a lawsuit lender provides immediate cash to a plaintiff in exchange for a portion of a future settlement. Because the transaction is an advance, these deals are not “loans” in the traditional sense of the word, since it is only repaid if the case is successful.

Thus, settlement loans are non-recourse funding options for plaintiffs who cannot qualify for other types of financial liquidity arrangements.

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Why Multiple Settlement Loans?

Typical settlement loans occur when plaintiffs have exhausted other opportunities to access cash. These might include:

• loans from friend or family
• cash out mortgage refinancing
• early withdrawal of retirement funds
• sale of financial or other assets
• loans from life insurance
• and others. . .

Simply put, the purpose of settlement loans is to allow plaintiffs to pay their expenses while they wait for their cases to resolve. With financial support, plaintiffs can reject low-ball settlement offers and allow their attorneys to fight for every nickel.

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How Multiple Settlement Loans Occur

Multiple settlement loans can occur because a plaintiff needs more money to meet his/her needs. This is common as the majority of lawsuit loan clients apply for and receive multiple lawsuit loans.

Lawsuit lenders will generally consider multiple fundings if there is enough “room” in the case. Based upon certain underwriting considerations, a lender will generally advance money up to a certain ratio of loan amount to settlement value. Depending on variables such as venue, insurance coverage, and expected duration of the case, lenders will advance up to 10-20% of the case’s settlement value. Until that ratio is reached, settlement funders will likely advance money multiple times to clients.

In some instances, the initial “lender” refuses to advance additional money. Reasons might include too much exposure to a certain case type, the need for portfolio liquidity or the company feels the case is sufficiently funded. When this occurs, plaintiffs often seek other sources of funds or even engage other settlement loan providers for additional support.

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Multiple Lawsuit Loan Issues

When multiple settlement loans are sought without the original funder’s involvement, some important issues naturally arise. These include:

Multiple Settlement Loan Buyouts

Contractual language in MOST lawsuit funding contracts prohibits the advancing of money to a plaintiff without simultaneously paying the initial advance(s) off in full. That is, multiple settlement loans by different funders are not generally allowed. “Funding behind” an existing lawsuit loan company is frowned upon in the industry and fails to meet the best practices guidelines as expressed years ago by the New York Attorney General.

Despite these means of self-regulation, multiple fundings can occur. This can be a result of miscommunication on behalf of the client, attorney and lender. Multiple contracts can also occur if one attorney is fired and new counsel retained. If the account is not monitored correctly, the funding agreement sometimes gets lost in the shuffle of paperwork between the two offices. These are just two examples.

Mistakes Can and Do Happen

When multiple settlement loans occur, whether intentional or by mistake, it can become a dicey situation. The first funder will likely want lien priority since they were the first to advance money. Remember, “funding behind” the original advance without satisfying the initial lien is against the contractual language. If this issue were to be litigated in court, the first funder would have a strong argument in favor of a primary position.

In real world practice however, compromise is usually the solution. All parties are intimately aware of the cost of litigation. Most funding companies will reduce their payoffs and simply move on if it is in there best interests to do so.

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Multiple Funding Takeaways

As you can see, multiple settlement loans are common. Lawsuit funding is a flexible liquidity option for plaintiffs who need financial support. Plaintiffs benefit from smaller advances because they use the money as the need arises. This avoids having to pay “use fees” on money that will not be needed until later on.

While multiple fundings help plaintiffs, some limitations still exist. As mentioned above, only a finite amount of funding is available. Additionally, best practices dictate that a previous funder must be “bought out” of their position if additional money is advanced by a competing entity.

We hope this post helps you in understanding more about multiple settlement loans and the lawsuit funding industry. Thank you for your interest in multiple settlement loans and Fair Rate Funding.

What to Expect When Going to Trial

Recent technologies allow us to see the reality behind trials in particular and the legal system works in general. Prior to these advances, much of what we learned about civil trial expectations came from books, movies or the occasional Matlock rerun on television.

While Matlock was a criminal attorney, there are vastly more civil cases than criminal ones in the United States. Civil cases involve personal injury negligence, contract disputes, wrongful termination, discrimination, patent infringement, workplace accidents, etc. and make up the bulk of trials in the legal system.

Since the majority of lawsuit funding involves personal injury cases, this post examines civil trial expectations or what you can expect when going to trial in an injury case. Other cases will present similar civil trial expectations. Additionally, we consider other important factors if a trial does occur.

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Basic Injury Civil Trial Expectations

Trials occur before what is known as a “trier-of-fact” which can either be a judge (bench trial) or jury. The trier of fact must:

• hear evidence from both sides
• weigh the credibility of witnesses and evidence
• decide what facts are true for purposes of the proceedings
• apply those facts to the law as instructed by the judge
• render a verdict based upon the facts and law

While bench trials occur frequently, juries can be expected in most civil trials.

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Civil Trial Expectations

Jury Selection

Jury selection begins the trial proceedings. During the selection process, attorneys from both sides ask questions of prospective jurors designed to uncover potential conflicts or biases not uncovered by initial screening. This questioning is called voir dire, which is french for “to speak the truth.” Each side has the ability to remove certain jurors from the pool based upon their answers. The number of removals is specified in court rules and is limited. When no more removals are available or used, the jury is selected.

Opening Statements

The judge’s role is to preside over the process. As the trial begins, the judge makes some preliminary instructions to the jurors and opening statements commence.

The purpose of opening statements is to tell jurors something about the case they will be hearing. Both sides make their statements but the party with the burden of proof (plaintiff) usually begins. Opening statements should be based upon facts that are to be shown by actual evidence. These statements should not be argumentative. Lawyers will argue their client’s side later in the trial.

The opening statement is one of the most important components of any trial. It is the first opportunity both parties get to speak to the jury about the case. It is intended to frame the jury’s perspective of the evidence that will be presented.

Evidence, Burdens of Proof and Putting on the Case

After the jury is selected, the case will move to the evidentiary phase of the trial. During this phase, you can expect both sides to present evidence supporting their side of the story. Since the vast majority of civil lawsuits are settled prior to trial, it is a pretty sure bet there are some real issues to be decided by the trier of fact. If not, a trial simply wouldn’t be necessary.

Civil Trial Expectations and The Burden of Proof

In order to win a lawsuit, the plaintiff must meet its burden of proof. In most civil cases, that burden is a preponderance of the evidence standard. That is, with the evidence they bring before the court, plaintiffs must show their side of the story is more likely than not. In an injury lawsuit, the burden means that considering the evidence, defendant’s actions resulted in plaintiff’s injuries more likely than not. Contrast this with the beyond a reasonable doubt standard necessary for a criminal conviction and you can see how much less of a burden this is from an evidentiary standpoint. The jury’s determination just has to tilt ever so slightly in the plaintiff’s favor.

Bear in mind, plaintiff must also show any damages are directly related to the injuries caused by the defendant’s negligence. Accordingly, plaintiff’s attorney will call the injured party, witnesses, and/or medical experts to testify.

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The Use of Witnesses

Generally, two types of witnesses are used in civil cases. These are fact witnesses and expert witnesses. Fact witnesses are called to testify regarding personal observations and can include eyewitnesses, treating physicians, friends, family members, co-workers, employers and the plaintiff him/herself.

Expert witnesses are used to explain complicated evidence to the jury. These witnesses are qualified through their credentials and experience and are asked specific questions regarding various issues at trial. One example of an “expert” might be an accident reconstruction expert who offers an opinion on how an accident actually occurred. Other experts can include medical professionals, vocational rehabilitation experts, economists, and others. Generally, any issue that can be enhanced by expert testimony is allowed.

Of course, the defense will have its own experts perhaps contradicting plaintiff’s expert’s findings.

Both parties are afforded the opportunity to question the other party’s fact and expert witnesses. This is called cross-examination. The purpose of cross examination is to weaken the effect of the testimony given by pointing out inconsistencies, exceptions, conflicts or credibility.

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Summation

When all evidence is presented, lawyers from both sides offer their closing statements. Also known as summation, the lawyers “sum” up their cases for the jury and argue for their clients. Unlike opening statements, civil trial participants can expect closings to be more argumentative than opening statements. The lawyers’ job in summation is to advocate for their clients by framing the evidence in the light most favorable to their version.

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Jury Instructions and Reaching a Verdict

After the closing statements, the judge reads jury instructions. These instructions instruct the jury of the laws at issue and how these standards should be applied to this particular set of facts. Afterwards, the jury heads to the jury room to deliberate – that is, to reach a decision.

The first decision is whether the plaintiff reached the burden of proof (proved the case). If the answer to this question is “yes”, then the jury must calculate awards for both economic and non-economic losses, like pain and suffering. Once a decision is reached, the verdict is read in open court and the decision entered into the record. Once the verdict is read, the civil trial phase of the proceedings concludes.

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Post Trial Proceedings and Other Issues

After a verdict, civil trial expectations predict some post trial motions, appeals, and other legal posturing. Over all, civil trials are expected to be costly and time consuming affairs. This is why 95 out of 100 claims are settled prior to reaching the courtroom.

Settlement is Better for All Parties

Most legal professionals would agree that settlement is in everyone’s best interest. First, trials are time consuming and stressful. Settlement saves time and all parties avoid the stress of trial. Second, trials are expensive. Even though plaintiffs’ attorneys are normally paid only if a case is won (contingency fee arrangement), there are significant costs associated with going to trial. Some of these include:

• travel costs
• court costs
• costs for trial exhibits
• expert fees
• post trial transcript fees
• and more . . .

It should be noted that from the defendant’s (insurer’s) perspective, trials are just as risky. Insurers want to deal with claims in the most efficient way possible. Trials cost insurers the same expenses as listed above with the added expense of paying attorneys to defend the case. The idea is to pay as little as possible without having to go to trial. After all, when you place the decision with random strangers (jury), anything can and will happen.

With a settlement, the insurer’s loss is known and expenses avoided. The plaintiff gets an amount that is agreeable to him/her and plaintiff’s attorney gets his/her fee. All the parties are somewhat disappointed, but this is necessary for compromise.

Legal Advice and Counsel

If you were injured in an accident, you should consult an attorney. The consultations are usually free so you can get a feel for civil trial expectations and the legal process in general without paying an hourly fee. Because the practice of law is a localized affair, you need to consult a licensed attorney in the appropriate jurisdiction. What jurisdiction is appropriate for your case? Ask an attorney!

Remember, lawyers help you recover the most compensation possible for your injuries. This means you will have enough money to cover medical expenses, lost wages, pain and suffering and much more. There are limitations to filing a lawsuit in certain circumstances so seeing an attorney as soon as possible is imperative.

While civil trial expectations are an interesting topic for a blog entry, the nuances of civil trials are jurisdiction specific and are beyond the scope of this article. We hope this brief introduction into this topic will aid in your understanding of your legal options and expectations. As always, all legal topics offered herein are for informational purposes only and are subject to our disclaimer.

Thank you for your interest in civil trial expectations and Fair Rate Funding.

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Slip and Fall Notice Requirements – an Important Issue

We’ve explored slip and fall accidents in previous posts. In this article, we explore slip and fall notice requirements as they pertain to negligence lawsuits.

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Slip and Fall Lawsuits Background

Actions in negligence begin with a duty of care being owed to other people/entities. When that duty is breached, and that breach causes the fallen to be damaged, the basics of a negligence lawsuit are in place.

A slip and fall lawsuit arises when a duty of care was breached, that breach caused the plaintiff to fall, and that fall resulted in damages. Slip and fall lawsuits normally target property owners or those who are in charge of the premises. To prove slip and fall negligence then, the plaintiff must show:

• a property owner negligently created the condition that caused the fall
• the property owner failed to maintain the area where the fall occurred
• or the property owner knew or should have known of the hazard and failed to cure or adequately warn others of the condition

It is the second and third scenarios where notice requirements are involved.

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Slip and Fall Notice Requirement

Obviously, if a property owner creates the hazardous condition, he/she/it is aware of the condition and danger it poses to others. A failure to maintain the area however, involves a slightly different analysis since explicit knowledge of the condition is not a given. Because the law recognizes that property owners only have a duty to remedy conditions that are known or should be known, plaintiff must prove not only the condition was a hazard but also was known or should have been known.

Thus, whether the defendant “had notice” of the condition is a common issue during slip and fall litigation.

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Actual vs. Constructive Notice

There are two types of notice: actual notice and constructive notice.

Actual Notice

Actual notice means the defendant knew of the dangerous condition. This is done by proving the defendant directly observed the condition or were informed of the condition prior to the incident in question. Actual notice is an evidentiary question and can be proven with:

• inspection documents
• letters written by tenant or other party informing of the condition
• prior accidents
• verbal communications

Constructive Notice

Constructive notice is the legal fiction that a party received notice. Constructive notice is used if plaintiff cannot prove actual notice. When a plaintiff tries to prove constructive notice, they are asking the court to find that even though the defendant didn’t directly observe the condition (actual notice) nor were they informed of the hazard (actual notice), they should have known about the condition.

Examples of constructive slip and fall notice can include evidence the hazard existed for so long that the condition was obvious. Plaintiffs also sometimes try to show how regular/periodic inspections would reveal the condition and such inspections were/are reasonable.

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Notice Hurdles

In most jurisdictions, slip and fall notice is not enough to prove liability. Reasonableness is always a criteria when determining what a prudent party should or shouldn’t do under similar circumstances. Accordingly, states allow a reasonable time between the notice and the remedy – whether it is to eliminate the hazardous condition or warn others of the danger.

Consider an ketchup spill on Aisle 9 at the local supermarket. If a patron slips and falls on the condition a short time after the condition is created, liability will be much harder to prove since there was no opportunity for the business to remedy the condition. If 30 minutes elapses between the spill and the fall, liability will be easier to establish. Plaintiff would likely assert the grocer should take steps to monitor the aisles for debris and/or other hazards. Ultimately, what is “reasonable” is up to the judge or jury at trial. Maybe a jury would find that 30 was not long enough. Another jury might find the owners should monitor aisle in even shorter increments. Anything can happen at trial.

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Other Considerations

Other slip and fall notice issues are also present. For example, property ownership affects the impact of notice in certain cases. Consider a public building where an accident occurs. Most states have laws that protect public entities from liability. Sometimes referred to as Tort Claims Acts, these protections sometimes include an increased negligence standard but can also require “actual” written notice of a defective condition to be a condition on liability.

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Legal Advice and Counsel

While slip and fall notice requirements are common in negligence, the nuances of negligence law are jurisdiction specific and are beyond the scope of this article. If you were injured in an accident, you should seek the advice of an attorney. As stated above, there are limitations in certain circumstances so seeing an attorney as soon as possible is imperative.

We hope this brief introduction into this topic will aid in your understanding of your legal options. As always, all legal topics offered herein are for informational purposes only and are subject to our disclaimer.

Thank you for your interest in slip and fall notice requirements and Fair Rate Funding.

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Examining the Pros and Cons of Settlement Loans

In this article, we will explore the pros and cons of lawsuit settlement loans. We examine the benefits and drawbacks of pre-settlement funding and offer advice on when to consider lawsuit loans as a financial support option.

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What are Settlement Loans?

Settlement loans can be described as specialty financial transactions that provide immediate cash to litigants who need money while they wait for a civil lawsuit to conclude. The settlement loan business purchases a portion of the prospective lawsuit proceeds ahead of time. The plaintiff gets financial support quickly. The business gets a return on its investment if the case is successful.

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Why are Settlement Loans Popular?

Settlement loans arose from many plaintiffs’ need for cash while waiting for their cases to settle. This was particularly true for personal injury plaintiffs who were no longer able to work because of their physical limitations. Since lawsuits take time, many were unable to pay simple living expenses and were forced to accept “low-ball” settlement offers as a result.

In some states, personal injury attorneys are able to advance money to clients in anticipation of settlement. In others, state ethics rules prohibit the practice. Regardless of the jurisdiction, plaintiffs need this financial support. The purpose of settlement loans is to fill this need.

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Pre-Settlement Loans – The Pros

Lawsuit settlement loans offer several benefits for plaintiffs, these include:

Immediate Financial Support

Struggling plaintiffs need cash fast. With settlement loans, plaintiffs get immediate cash to pay for any type of expenditure. This is probably the most important settlement loan “pro” – the speed in which plaintiffs can secure relief.

The settlement loan process is simple. Clients first apply with a phone call or a contact form. A lawsuit lender contacts the plaintiff to discuss the case. Once “pre-qualified”, and with the plaintiffs’ permission, their lawyers are contacted to get everyone on the same page in terms of expectations, etc. Once approved, a contract is forwarded for plaintiffs’ and attorneys’ signature.

When executed agreements are received, plaintiffs are forwarded cash via electronic bank transfer or check via overnight courier. Thus, a major settlement loan pro is the immediate access to funds. Plaintiffs can have money in their accounts in as little as 12 to 24 hours.

Money is Restriction Free

Another settlement loan pro is flexibility. Plaintiffs can use settlement loans in any way they wish. There are absolutely no restrictions on how the money is spent. Most plaintiffs use settlement loans to pay for living expenses such as:

• groceries
• rent or mortgage payments
• utilities
• school tuition
• medical bills
• medical treatment
• legal fees
• back taxes or debts

No restrictions give settlement loans an advantage over other types of traditional loans which require the money to be spent on certain items, such as car or school loans. This flexibility can be a significant “pro” when comparing different financing types.

Settlement Loans are Non-Recourse

Settlement loans are not really loans in the traditional sense of the word. Instead, they are referred to as non-recourse funding. Since the transaction is structured as an advanced purchase of a future settlement, the lawsuit proceeds are the sole source of repayment under the contract. This means two very important things. First, the advance is ONLY repaid if the case is successful. Second, plaintiff is not personally liable for the advance.

The above are valuable pros when discussing settlement loans since they protect plaintiffs in the event lawsuits are lost. With settlement loans, plaintiffs can pursue their case with ease of mind since they cannot be held personally responsible for the loan.

Credit Scores Don’t Matter

Also unlike traditional loans, lawsuit funding does not require a credit check. Again, there is no personal repayment of a settlement loan. Nor are periodic payments required. Therefore, credit history is irrelevant.

The settlement loan “pro” then, is that plaintiffs with poor credit scores can still get relief. Settlement funding companies base their decision solely on the facts surrounding the lawsuit. Plaintiffs who can’t access other forms of credit can find financial support through settlement loans.

Collateral Not Needed

Another settlement loan pro is that no collateral is needed other than the lawsuit itself. Traditional loans, such as car loans or mortgages, require collateral as security. If the borrower defaults, the creditor can take the collateral as full or partial repayment. Since pre-settlement loans are only repaid by the lawsuit itself, plaintiffs do not have to risk their other assets. This can be a significant benefit in certain situations.

Settlement Loan Pro – a Heavier Case

In certain instances, lawsuit loans strengthen a lawsuit and demand higher settlement amounts.

Consider a personal injury lawsuit loan which is used to get much needed medical treatment. Sometimes referred to as surgical funding, lawsuit loans allow surgical treatment when no insurance coverage is available to pay for the procedure(s). More treatment usually means larger settlements so this settlement loan pro helps give more settlement value to a particular lawsuit.

Settlement Loans Give Attorneys Time

Because settlement loans relieve financial strain, plaintiffs are less likely to pressure their attorneys for a quicker settlement. Plaintiff attorneys can use their skills to negotiate the best possible settlement – free from knowing their clients are in dire need of funds.

The legal system has finite resources. Cases are usually heard loosely in the order in which they are filed. Plaintiff attorneys can be patient as they apply their craft. This usually results in a higher recovery than would otherwise be available.

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The Cons of Lawsuit Settlement Loans

Some aspects of settlement loans are not all that positive. Below are some settlement loan cons.

Settlement Loan Cost

One often cited settlement loan disadvantage (con) is that they can get expensive, especially if a lawsuit goes on longer than expected. Lawsuit funding investments are high risk. Higher risk means the cost to consumers must also reflect a larger risk of loss. Thus, interest rates and fees associated with settlement loans are often much higher than traditional loans.

Not All Lawsuits are Candidates for Case Loans

The good news is that if you have an attorney who is retained on a contingency fee arrangement (lawyer only gets a fee if successful), you will likely qualify for a settlement loan. However, many lawsuits are not candidates for funding. These can include:

• Landlord/tenant actions
• Social Security Disability claims
• Cases involving trusts and estates
• and others. . .

The vast majority of lawsuit funding involves personal injury loans. These include injuries sustained in car accidents, slip and falls, workplace accidents, product liability and other actions.

Pricing May Vary

Lawsuit funding is unregulated by the federal government. And although some calls for lawsuit loan regulation have been successful, many states still leave the industry alone. For this reason, few restrictions exist on how much lawsuit funding companies can charge for their services. Further, with the exception of some “best practices” suggestions from the New York State Attorney General’s Office, few requirements are codified as to how charges are calculated and funding terms disclosed.

Of course, an unregulated marketplace also has its advantages. For example, as more businesses entered into the market, competitive prices for quality cases has decreased. So the bad news is that companies can charge whatever they can get away with. The good news is that with a little research, it’s never been easier to find the best lawsuit loan company to serve your needs.

Negative Press

Some lawsuit funding companies have been accused of exploiting vulnerable plaintiffs and/or charging excessive interest rates and fees. Unfortunately, there are unscrupulous individuals in every business. Lawsuit funding is no different. Yet the predatory actions of certain entities should not taint the entire industry.

Like stated above, the settlement loan marketplace is largely unregulated. This is both a settlement loan pro and con. Fair pricing is available, you just have to look for it. Consider a company’s positive customer reviews before applying and make sure you read the contract thoroughly before signing. Protect yourself and you’ll be safe from predatory practices.

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Settlement Loan Pros and Cons Takeaways

Pre-settlement loans can be a helpful financial tool for plaintiffs. They are not without risk however so it would be prudent to weigh both settlement loan pros and cons before moving forward. It might also be helpful to consider other available funding options at your disposal. These might include:

• personal loans
• loans from family or friends
• mortgage cash-out refinancing
• retirement accounts
• and others. . .

Other Considerations

Weighing the pros and cons of settlement loans should contain an evaluation of:

• When the case is likely to be resolved
• Your immediate financial needs
• Future financial obligations
• The reputation of the funding company

While accurately predicting when a case will settle is difficult, a ball park time frame can be considered when deciding to obtain a lawsuit loan. Using your attorney’s expertise can be helpful in this regard. In most cases, attorneys have experience in similar situations and can estimate a time frame based upon these experiences.

Choosing a reputable lawsuit loan company has never been easier. Most companies have an online presence and their reviews can be read and evaluated. Plaintiffs might consider what terms the company quotes online or when they are contacted. Considering a Better Business Profile and/or age of the business might also be prudent.

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Settlement Loan Pros and Cons Conclusions

Generally, the best time for plaintiffs to consider a pre-settlement loan is after they’ve weighed the pros and cons, evaluated all available options and decide a settlement loan is in their best interest. Under these circumstances, plaintiffs can be sure they are making an informed decision based upon all available facts.

Thank you for your interest in settlement loan pros and cons and Fair Rate Funding.

Damages in Personal Injury Lawsuits Reflect Settlement Awards

In this post, we examine personal injury damages. We discuss common personal injury damages, how they are calculated and what effect they may have on the case. We also examine how personal injury damage calculation will affect the amount of a lawsuit loan approval, if requested.

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Different Types of Damages

At the most basic level, personal injury damages are either compensatory or punitive. Compensatory damages are meant to “compensate” for losses. Punitive damages are an effort to punish the wrongdoer and serve as deterrent to others. The most common type is compensatory. Since punitive damages are rare, we will focus only on compensatory damages in this post.

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Compensatory Personal Injury Damages

Compensatory damages are usually economic or non-economic in nature. Economic damages cost you money. Non-economic don’t necessarily cost you money but are no less damaging.

Economic Personal Injury Damages

Obviously, economic personal injury damages are a calculation of how to financially compensate injured plaintiffs. The most common type of economic damages are medical bills and lost income. Medical bills include co-payments and out of pocket expenses. Lost income includes any money the plaintiff would have earned but couldn’t because of injuries.

Non-Economic Personal Injury Damages

Non-economic damages are a little less straight forward in terms of calculation than economic damages which can be proven using documentation such as medical bills, checks and statements of account. Non-economic damages attempt to compensate for the plaintiff’s physical pain and suffering. Non-economic damages include:

• Pain and suffering
• Loss of consortium or companionship
• Loss of enjoyment of life

Since pain and suffering, loss of consortium and loss of enjoyment cannot be assigned a specific financial value, they are subjective in nature. That is, the compensation varies from case to case. Juries are instructed to calculate the severity of injury, differences in the plaintiff’s lifestyle as compared to prior to the accident, etc. when considering a monetary amount for personal injury damages.

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How Negligence Standards Affect Damages

In states that have comparative negligence standard, plaintiffs can still recover even if they were partially at-fault for the accident. There are two types of comparative negligence standard which courts utilize:

• Pure Comparative Negligence – plaintiff can recover 1% of the damages amount even if they are 99% at fault for the accident. That is, an award is reduced by the amount of fault assessed to the plaintiff.
• Modified Comparative Negligence – reduces any recovery by the amount at fault but also requires the plaintiff to not be more than 50% (or 51% depending on the jurisdiction) at fault for the accident.

Contrast comparative negligence standards with contributory negligence. Contributory negligence bars recovery if a plaintiff’s percentage fault is even 1%.

The vast majority of states utilize the modified comparative fault rule as applied to personal injury damages. Only a handful of states utilize the contributory negligence rule.

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What Factors Can Affect Damages?

Every personal injury case is unique. Yet some of the same situations show up all the time. Each can have a significant impact upon the amount of compensatory personal injury damages a particular plaintiff will likely recover. The factors that can significantly impact settlement amounts can include:

• the seriousness and permanency of your medical/physical condition
• available insurance coverage with high enough limits to adequately compensate a plaintiff
• liability and/or the ability to prove it
• strength of plaintiff’s credibility as a witness (and the credibility of other witnesses)

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In Conclusion

Since personal injury lawsuits make up the majority of lawsuit loans, we briefly examined damages in this post. Since the amount of a lawsuit loan approval depends upon a subjective determination of the likely settlement value of a lawsuit, a discussion of damages is a must. We trust this brief introduction into this in depth topic will help clarify some funding questions which routinely and consistently surface as our clients navigate the process. As always, all legal topics offered herein are for informational purposes only and are subject to our disclaimer.

Thank you for your interest in lawsuit funding.

Lawsuit Loan Best Price Guarantee from Fair Rate Funding

There is no shortage of articles regarding the cost of lawsuit loans compared to other types of financing. Much of the conversation revolves around lawsuit loan rates and fees. By offering a lawsuit loan best price guarantee, plaintiffs who need immediate financial support can compare contract terms and be guided accordingly.

In this post, we explore the cost of lawsuit loans as we try to understand the practical value of a lawsuit loan best price guarantee.

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Every Lawsuit is Different – The Challenge of Pricing

The pricing of every product or service must include the cost of production. A lawsuit funding company must calculate the cost of capital, marketing, operations and losses into the price of a lawsuit loan. This is basic business.

The wrinkle with regard to lawsuit loans is that every lawsuit has its own unique set of facts and circumstances surrounding it. This fact makes loss calculation a bit tricky. The way around this is to engineer enough room in the profit margin to account for a potential spike in unforeseen losses.

Although each case is unique, there are certain types of cases that historically were less risky than others. The pricing for lawsuit loans reflects the potential losses as well as an acceptable return on the money spent in providing these specialty finance products to plaintiffs.

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A Way to Increase Profit

Since competitive pricing offers the lowest profit to businesses, there are a few of ways to increase profit. The primary way is to increase the amount of customers served.

In the lawsuit funding arena, an additional way is to fund only those cases that have the highest probability for success. Remember, lawsuit loan pricing is what it is. To get a greater return is to fund less risky cases – enter the “Lawsuit Loan Best Price Guarantee”.

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Lawsuit Loan Price Guarantee

If you shop around online for a “lawsuit loan near me” or similar search, you will eventually come across a lawsuit funding company with a button or banner touting their lawsuit loan best price guarantee. Most will explain that if you get a written funding offer from another company, you can show that offer to the funder offering the guarantee and it will beat the terms of the competitor’s deal or you get some amount of money.

For example, our lawsuit loan price guarantee reads:

If Fair Rate Funding approves your application for a cash advance and another legal funding company sends you a written contract to advance the same amount at a lower total cost, we will beat that deal or pay you $250 guaranteed!

In other words, if you show us a contract, we will either beat the deal in terms of cost or pay you $250.00. Seems like a sweet deal. It actually is! Here’s why:

1. The client can get a better deal.
2. The new company gets a case that another funder already approved.

The only party that potentially loses is the old company. They are the ones who spent their time and efforts processing the case for funding and provided a written offer. Believe it or not, providing lawsuit loans costs money, time and expertise. No business wants to waste these things. Anyone can see the reasons why.

Yet, the original funder could have provided their best deal in the first place. And if their terms are simply not competitive, then as a business, they should take steps to remedy this situation.

Still, lawsuit loan price guarantees can be a valuable tool for plaintiffs to make sure they are getting fair treatment.

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Why Do Companies offer a Lawsuit Loan Price Guarantee

Basically, lawsuit loan price guarantees are legal loan case origination strategies designed to capture leads for potential business. Lawsuit loan leads are fairly expensive on the internet, and less than 20% of these leads result in approvals. For a funder to capture a case that is already approved by another funding company, that’s a marketing victory.

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Are Lawsuit Loan Best Price Guarantees a Marketing Ploy?

Best price guarantees for lawsuit funding are a marketing strategy, not necessarily a marketing ploy since the client is in a better position if the guarantee is engaged. Either the client gets a better lawsuit loan contract, or the client gets cash on top of the original funding contract that is so competitive, the second funder would rather pay money than beat the deal.

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Are There Risks to Lawsuit Loan Price Guarantees?

Best price guarantees are not without risk however. There is a slight chance the original funder pulls the offer for funding. The chances of this happening are slim but if the second funder takes an inordinate amount of time to underwrite the file, it’s possible.

Most funders will not leave an offer for funding open indefinitely. Most will follow up continuously until the deal is closed or the client refuses the offer. Thus, when dealing with a lawsuit loan price guarantee – time is of the essence.

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Conclusion and Takeaways

Lawsuit loan best price guarantees are a good way for clients to see if they are getting the best possible lawsuit loan for their case. If you have a existing offer and are not sure if the terms are competitive, it’s worth contacting us to make sure. Give us a call anytime at 888-964-2224 and we will answer any questions you may have.

Thanks for your interest in lawsuit loan price guarantees.

What to Expect From Your Med Mal Case

Trusting is a good word when describing the mind set of a medical patient. We expect medical providers to give us the best possible care and in a professional manner. Much more often than not, medical professionals meet this expectation. But mistakes can and do happen leaving some unfortunate individuals worse off than before they sought medical attention.

Unfortunately, undoing the harm caused from medical mistakes is usually impossible. If there is good news, it is the presence of laws designed to compensate those harmed by medical malpractice. If you or a loved one is the victim of medical malpractice, you may file a medical malpractice lawsuit to recover damages. This post examines medical malpractice expectations or what you can expect to encounter in your medical malpractice case.

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What is a Medical Malpractice Lawsuit?

Medical malpractice lawsuits are civil actions where a damaged plaintiff sues a medical professional in state or federal court. Med mal actions are based in negligence which means the medical professional:

1. Owed a duty of care to the plaintiff
2. That duty of care was breached
3. That breach was the (actual or proximate) cause of plaintiff’s damages

In order to prevail, plaintiff must show all of the above. Although any part of these three criteria can be a complicated issue, the most common area of legal posturing involves whether the duty of care was breached.

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Basic Understanding of Medical Malpractice Duty of Care

Breaching of the duty of care in a normal negligence case such as a car accident lawsuit, involves proving the defendant failed to meet up with society’s expectations of how a prudent driver would act under the circumstances. A way to illustrate what is prudent might be discussing whether the defendant was obeying the “rule of the road”. Violation of traffic laws normally means that driver breached the duty of care owed to other drivers.

Medicine’s equivalent to the rules of the road is known as the “standard of care”. The standard of care refers to what practices and procedures other medical professionals use in similar situations to define the level of care owed to patients. Thus, to prove malpractice, plaintiffs must show the defendant medical provider failed to adhere to the applicable standard of care.

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The Need for Expert Testimony

Since the jury pool does not consist of medical professionals, they simply lack the requisite understanding to adequately consider the standard of care issue. Even if they were, they would likely not be familiar with the applicable standard of care in a particular medical discipline. The medical profession is highly specialized after all.

To rectify this dilemma, the legal system uses “expert testimony” to inform jurors of the standard of care and what actions/inaction constitutes a breach of this standard. The need for expert testimony is not only for med mal lawsuits. Many lawsuit types involve expert testimony to clarify more complex issues for jurors.

If the medical mistake is so obvious, no expert is needed. Consider a doctor amputating the wrong leg by mistake. No expert is needed because the issue is clear and obvious.

Most medical malpractice cases are not so clear. Thus, med mal plaintiffs put forth the basis of their case with the testimony of their expert(s). Without a medical expert, there simply would not be a case.

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The Use of a Medical Malpractice Lawyer

There is a reason people use attorneys to help pursue justice. The legal system is complex and always changing.

A medical malpractice lawyer is a legal professional who assists patients who have been the victim of medical malpractice. Their experience, expertise and connections are all valuable assets that medical malpractice plaintiffs get access to when they retain a lawyer who specializes in medical malpractice.

Legal Experience

Medical malpractice lawyers are generally civil litigators who specialize in medical malpractice. Because of the field in which they practice, these lawyers have the type of experience unique to this specialty. In theory, med mal attorneys with more years of experience will be better negotiators, trial lawyers and advisors.

Expertise

Med mal expertise consists of understanding the nuances of medicine and how to question witnesses (non-parties, experts, plaintiffs and defendants) to get the most valuable testimony. Expertise also means how to negotiate successfully with insurance carriers and defense attorneys.

Connections

Good medical malpractice lawyers have connections to valuable litigation assets. These include the ability to find and retain experts and exhibits. It can also include the ability to secure the necessary financing needed to litigate the case.

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How Do You Know if You Have a Medical Malpractice Case?

Medical negligence is not always easy to spot. If you think a medical professional made an error and you were damaged as a result, it is a good idea to speak to a malpractice attorney. In most instances, the initial consultation is free.

Medical malpractice law is a highly specialized field and risky business. In some jurisdictions, most medical malpractice cases are not successful. The money the attorney must spend to litigate the case must be recouped after a case is won. If the case is lost, the money spent is also lost in most instances.

If, for some reason, the first attorney you see is not interested in the case, you should keep looking. Medical malpractice law is complex. Add to it the business aspects of the legal practice and it is easy to see that some attorneys might take a pass while others are willing to take on the risk. Regardless of what you might hear in the media, frivolous lawsuits are not a massive problem since they are so expensive to litigate.

Don’t be discouraged, if there is a case in your circumstances, an attorney will likely recognize it. Attorneys will likely take on the case if the potential recovery warrants the risk. Business drives the profession.

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What can I Expect a Medical Malpractice Lawyer to Do?

If you have a case, medical malpractice expectations mean you can expect your lawyer to do certain things. These include:

• Secure expert witnesses
• Collect evidence showing negligence
• Gather evidence of damages, including medical bills and income statements
• Communicate and negotiate with the insurance company
• Prepare and file a Complaint in court
• Prepare and argue motions
• Discuss any settlement offers with you

Most medical providers are insured. They have large legal teams whose job it is to minimize their financial exposure to loss. That is, they spend millions of dollars defending against malpractice lawsuits.

Hiring a medical malpractice attorney means you are hiring a legal professional who can navigate the legal landscape and secure compensation on your behalf.

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Medical Malpractice Expectations and Settlement?

Many medical malpractice cases are settled before trial. Most of these settlements occur because malpractice is obvious and a plaintiff’s verdict is likely if the case goes to a jury to decide the outcome. In other instances where negligence is not so clear, the provider might still be willing to settle in return for confidentiality. News stories of medical negligence are bad for business. Doctors and hospitals weigh the cost of the settlement with the negative press and make a settlement offer based upon that evaluation.

Accepting a settlement can depend on a multitude of factors. These can include your current condition, your losses to date, and/or your future losses. Your medical malpractice lawyer will help you calculate the value of your case, so you can better compare any settlement offers that you might receive.

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Medical Malpractice Expectations Concluded

In this post we examine what you can expect from your med mal lawyer. Every case is different. So is every attorney. Each brings a unique skill set to the table. Your ultimate recovery will depend on the facts of your case; your lawyer’s skills, experience, and expertise; and what you expect the process to yield.

If you or a loved one is injured as a result of medical malpractice, please consult an attorney as soon as possible as limitations on your lawsuit can apply. If you need an aggressive medical malpractice attorney on your side, seek counsel. There are thousands of attorneys who are willing to help. When you meet, ask them about your medical malpractice expectations and see how they respond.

Thank you for your interest in Fair Rate Funding.

Answering Why a Lawsuit Takes So Long

Civil lawsuits (especially those which are eligible for lawsuit loans) take time. Often many years pass before the case is resolved. In this post, we examine the top reasons why a lawsuit takes so long.

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Lawsuit Duration – Multiple Factors Collide

In criminal cases, the Sixth Amendment of the Constitution guarantees the right to a public trial without unnecessary delay. This is often referred to as the “right to a speedy trial”. In civil actions, no such guarantee exists. Instead, civil litigation involves the same processes applied to all actions. It is in the application of these steps that contributes greatly to the why a lawsuit takes so long to resolve.

Attorney Retainer

Following a particular incident, accident or occurrence, potential plaintiffs must search for counsel. While some plaintiffs represent themselves in court, the majority of plaintiffs are represented by counsel.

Finding an experienced attorney in the applicable area of law is the first step in the process and a very important one. This is because the ultimate recovery of a particular lawsuit depends not only on the facts of the case, but also the attorney’s skill, experience and expertise in negotiating settlements with defendants and/or insurance companies.

Investigation

Lawyers begin work immediately after being retained. One of the first things they do for clients is investigate the circumstances surrounding the incident in question. This can include hiring an investigator or expert, but can also include compiling necessary paperwork such as:

• Accident or incident report(s)
• Initial treatment records
• Other medical records

Other parts of investigation consist of locating available insurance policies, drafting letters of representation and if necessary, putting potential defendants on notice that plaintiff is making a claim against them.

Treatment or Remedy of the Condition

Many civil actions involve personal injuries which occur due to negligence. Because personal injury settlements consist not only of past suffering but also future pain and suffering as well. It is difficult to ascertain the amount of future pain and suffering until the condition’s permanency is established. In order to understand permanency then, the patient/plaintiff must have reached maximum medical improvement (MMI). That is, the plaintiff must complete treatment for the condition. At that point, nothing more can be done to cure the condition from a medical treatment standpoint. Whatever disability remains is deemed permanent.

Negotiating “Pre-Suit”

Before formal proceedings are filed, many lawyers make a settlement demand in an effort to conclude the case and avoid additional delay. Settlement is usually in the best interests of all involved since the amounts are known to the parties and not left to a jury/judge. Plaintiff attorneys get paid quickly and for less work. Insurers avoid legal fees for defense counsel. And plaintiff gets paid and moves on with life.

However, larger cases are generally not settled pre-suit. Because more money is involved, insurers want to completely investigate the claim before they pay damages. More potential damages mean more potential exposure. Most cases with large potential damages are defended in court.

Formal Proceedings

If settlement negotiations break down, plaintiff will begin formal proceedings by filing a complaint in the proper court. This begins another set of steps which must be completed before the process is concluded.

The filing of pleadings begins the process. First, plaintiff files a complaint outlining how he/she was wronged and what relief they seek. Next, the defendant(s) file their “Answer” to the charges either admitting or denying the allegations formally. From there the Discovery Process begins.

Discovery

Discovery is where all parties of the case are required to share information with each other. The idea behind these requirements is that sharing of information helps all parties and the court narrows down all the pertinent issues to be decided in the proceedings. Parties generally use the following to share this information:

• Interrogatories – Questions under oath are made by the parties to locate available insurance, give a sworn account of the events that gave rise to the case, and uncover other issues that can affect the resolution.
• Requests for the Production of Documents – These are usually requests for insurance policies or any other document which will aid in a case’s resolution.
• Depositions – Depositions are when plaintiffs, defendants, witnesses, experts and other parties are asked verbal questions under oath. The testimony is recorded and transcribed as formal testimony as if done in the courtroom.
• Requests for Admissions – These are questions propounded on parties asking them to admit or deny the truth of certain statements under oath.
• Witness Lists – Lists are given of potential witnesses to the events or circumstances surrounding the case.

Court rules state that each discovery request gives the other party time to respond. This is usually 30 days. In other words, if plaintiff sends out a request for production, the other side has 30 days to submit a response. In most instances, parties want to review responses before propounding additional requests. This adds additional time.

If a dispute arises as to what is required, lawyers argue them before a Judge on a motion day (a day in court set specifically to hear motions). Most courts have only a couple of motion days each month.

Considering all the moving parts, it is easy to see the discovery phase is the most time consuming portion of most civil lawsuits. The process can literally last for several years in more complex cases, and usually a minimum of several months even in the more routine civil actions.

Arbitration/Mediation

Many court systems require cases to go through arbitration and/or mediation where objective parties review the same evidence that will likely be presented at trial.  Since the courts are very crowded (more on this below), the hope is that by receiving an objective 3^rd party’s assessment of the case, plaintiffs and insurers can adjust their expectations about the case’s value and negotiate from a more informed position.  The idea is that a settlement is more likely under these conditions.

Judge and Jury – The Trial Phase

If settlement negotiations break down, the case is set for trial.  Plaintiff and defense counsel appear at a trial call and wait for a judge to preside over the case.  Often, in busier jurisdictions, a judge may run a list of cases eligible for trial with the oldest one getting priority. Depending on the jurisdiction and venue, the case can be recycled on the trial list for many months.

Once a judge is available and jury selected, the case is presented to the jury.  This can take as little as a couple of days or as long as several weeks/months depending on the amount of testimony.  Afterwards, the trial court decides whether the plaintiff proved the allegations and whether and what amount of monetary damages are appropriate under the circumstances.

Appeals

If the plaintiff “wins” the case, the process may still drag on a bit longer.  Defendants have the right to appeal the trial court decisions and, depending on the amount of the award, often will. Factual issues are not appealable, but legal issues are. Generally, there are usually legal issues that can be raised on appeal. If defendant is hit with a large verdict, an appeal is likely worth the time and expense for defendants.

Remember, filing and response time frames apply to post trial motions, notices of appeal, appellate briefs, responses to appellate briefs, and reply to the responses. Also, some appeals are set for oral argument before a panel of appellate judges. All of this adds to why a lawsuit takes so long.

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Why A Lawsuit Takes So Long Conclusion

In this post, we examined a few of the reasons why a lawsuit takes so long. Most of these are outside the control of attorneys who often take the blame for these delays. The bottom line is that lawsuits take a long time and the process itself is the reason. In most states, only a small percentage of the operating budget is applied to the judicial system.

Some might see why a lawsuit takes so long as a reason to rejoice. After all, parties would often be discouraged from entering into the process. They would, in theory, be more likely to resolve their disputes outside of the system and leave public resources to tackle other societal issues.

Regardless, the question: “why does a lawsuit take so long” is a question worth asking. We hope you enjoyed the post.

Thank you for your interest in Fair Rate Funding.

How to Help Your Attorney Help a Funding Company with Your Settlement Loan

You already know that your attorney needs to cooperate with the settlement funding process. This post will outline the top 3 ways to help your lawyer “help you” obtain a settlement loan.

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Settlement Loan Process

The lawsuit funding process goes like this:

1. You contact the settlement loan company and request an advance.
2. Once you are pre-qualified, the company requests important documents (evidence) from your lawyer’s office.
3. The firm forwards the requested documents and they are reviewed by company underwriters.
4. Underwriters reach out to the firm to discuss the merits of the case, settlement expectations, etc.
5. A decision is made to fund the case or decline the application.

The process is simple, but obstacles can appear. With your help, many of these can be overcome.

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#1. Tell Your Attorney You Want Funding

Pre-qualification for settlement loans results from asking questions. One of the questions we ask clients during this process is whether their lawyer knows they are applying for settlement funding. We ask this because sometimes, our attempts to secure important facts regarding the case are met with resistance by law firms and their staff. Usually when this happens, it is because our initial contact is the first the firm is learning about their clients’ intent.

For some reason, some clients are reluctant to communicate with their attorney about their needs for funding. One of the reasons might be risking the attorney saying “no” to the request. While this sometimes might occur, it is the exception – not the rule.

The truth is – attorneys are well versed as to why their clients might need funding and are usually willing to assist if they do not think the funding will hinder settlement negotiations down the road. The best course of action then, is for you to discuss your intentions with your attorney prior to applying for settlement funding.

Lawyers do not need to approve your settlement loan, but they do need to cooperate in the process and sign off on the funding contract. Since this is known, it’s best to let them know right from the start. That way, any funding company request comes as no surprise and the process moves much easier.

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#2. Follow Up with Requests for Documents

Once a settlement loan company requests documents, the ball is in the law firm’s court. The process cannot move forward without their participation.

Law firms are busy places. Many funding requests for documents are not dealt with in a time frame that suits the clients’ needs. This may occur because the firm has more pressing concerns than dealing with a funding request. Consider a firm preparing for multiple large and expensive trials at the same time. The likelihood of a funding request taking priority over trial preparations is small.

Settlement loan companies will generally follow up with their requests daily. Most will not make multiple calls to “chase paper” in a single day. Pestering law firms is rarely a good idea and will likely create an adversarial relationship right from the start. Instead, the best thing a client can do to move the process along is to respectfully remind the firm of your request and that time is of the essence.

Some settlement loan applicants want to simply let the funding company handle the process. And this is fine. But more often than not, clients making their presence felt and needs understood by contacting their law firm leads to quicker approvals and a smoother funding process.

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#3. Help Facilitate the Underwriter’s Call

The last piece of the settlement funding underwriting process is a conference call with the attorney. During this call, settlement loan underwriters ask a variety of questions regarding liability, damages, insurance coverage issues, current status of the case, etc. The phone call is usually the last step in the lawsuit loan approval process. Applicants can expect a funding decision shortly thereafter in most cases.

As stated above, law firms are very busy places. Attorneys need to use proper time management to maximize their efficiency. While support staff usually handles document requests, the attorneys themselves must field the lawsuit underwriting call in the majority of cases. Scheduling a call with a busy attorney can often be challenging.

Of course, lawsuit funding underwriters are also busy. But their job is to contact attorneys and have these conversations. Accordingly, most professional settlement loan underwriters will gladly offer several available times to schedule a call.

Clients can help themselves by helping schedule the call. By offering these times to their lawyers, plaintiffs get involved with the process in a positive way. Moreover, attorneys are more likely to respond to a client’s request than from a non-client.

Helping facilitate a phone call between settlement loan company and attorney can do wonders for moving the process along and a positive conversation can do wonders for the approval chances of a particular case.

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Conclusion

Despite being a simple process, settlement loans can sometimes be tricky. We’ve touched upon the top 3 things applicants can do to help themselves and secure the financial support they need. Communication, honesty and persistence goes a long way in helping all parties involved navigate process toward a positive outcome.