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How Do Car Accident Settlements Work?

car accident funding

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Car Accident Settlements – A Typical Personal Injury Lawsuit Type

Car accidents are a typical personal injury lawsuit type. They arise when one party is harmed by another through no fault of their own. Generally, car accident cases involve claims of physical, economic and other damages on behalf of the injured/harmed party. In this post, we explore how car accident settlements work.

Recognizing the Need to Protect Citizens

Society understands there are trade-offs with any human advancement. Accordingly, we protect individuals/entities from harm by recognizing certain causes of action to seek redress. Once such advancement is the use of motor vehicles for transportation. The trade-off is the possibility of harm due to another’s negligent behavior.

Car Accident Settlements

Understanding the possibility of harm is one thing. Another is protecting people from it. In the case of automobile injuries, there is enough data for insurers to assess the likelihood of loss. This creates the ability for drivers to insure against this possibility. Indeed, having automobile insurance coverage in place is mostly a pre-requisite for the lawful operation of motor vehicles throughout the United States. Virginia and New Hampshire are currently the only states which do not require car insurance.

Civil Justice System Aims

The civil justice system aims to place plaintiffs in the same position as they were prior to being “wronged” by a defendant(s). If this cannot be practically accomplished (like in the case of permanent personal injuries), then compensation comes in the form of money.

Car accident settlements begin when injured parties make claims for compensation. At-fault parties turn these claims to their insurers. Insurers investigate, process and if necessary, settle the matter for their policy holders.

Negligence is the legal framework from which car accident settlements naturally arise. In fact, car accidents are the ideal type of negligence lawsuit since liability is often easily established. Car accident settlements are based upon a legal claim for damages under the legal system – the very system which is designed to compensate victims under established negligence laws.

Car Accident Settlements – Initiating the Process

Initiating a claim that will eventually become a car accident settlement involves proving the at-fault driver was negligent. Negligence requires the plaintiff prove the defendant had a duty to exercise reasonable care, the defendant breached that duty, this breach caused the plaintiff’s injuries or damages, and that the plaintiff suffered actual harm as a result. These elements are crucial in establishing liability and seeking compensation in a car accident settlement.

So the first step is uncovering who is at fault. If the other party was negligent, the next step is finding out how the plaintiff was harmed. Most car accident settlements involve claims for personal injuries sustained as a result of the accident. Other personal injury damages include lost wages, medical costs, property damage and other out of pocket costs.

If there are damages, then the last requirement is uncovering who has the money available to compensate the plaintiff. In most car accident settlements, there is an insurance policy in place to pay for damages. The ability to pay damages is the final piece in the puzzle.

The Car Accident Settlement Process

The car accident settlement process involves multiple steps which are outlined below. These are typical of car accident settlement negotiations but some individual cases may not require all of the phases listed.

Gathering Evidence

The first phase of the process involves collecting evidence to support the claim. This may include photos of the accident scene, witness statements, police reports, medical records, and other relevant documentation.

Make a Demand

Most lawyers will compile a demand letter which sets forth the claim in detail. In it, plaintiffs outline the claim and the reasons why settlement is appropriate. Since settlements make sense for all parties, some insurers will entertain settlement and make a settlement offer prior to formal proceedings being initiated.

Formal Complaint and Service

If settlement offers are simply low-ball attempts to settle cheaply, plaintiffs initiate formal proceedings by drafting a complaint (also known as a petition or lawsuit) outlining the case and filing it with the appropriate court. The defendant must be formally served with the complaint and a summons, which informs them of the lawsuit and their obligation to respond.

Discovery

Both parties exchange information and gather evidence through the discovery process. This may include depositions, interrogatories (written questions), requests for documents, and possibly expert witness reports.

Negotiation

During the litigation phase but before going to trial, opportunities for settlement negotiations often arise.

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Settlement or Trial

When car accident settlement negotiations fail to yield a satisfactory offer, plaintiffs may choose to pursue justice at trial. This opens a whole other area of legal system delays plaintiffs must endure.

Even if a trial is successful and a jury renders a verdict in favor of a plaintiff, the post trial process still awaits. This can include:

  • Post-Trial Motions: After the verdict, either party may file post-trial motions. These motions can include:
    • Motion for Judgment Notwithstanding the Verdict (JNOV): This motion asks the court to overturn the jury’s verdict because there was insufficient evidence to support it or because the jury reached a decision that was contrary to the law.
    • Motion for a New Trial: This motion asks the court to order a new trial on the grounds that there were errors during the trial (such as improper jury instructions, misconduct by jurors or attorneys, or newly discovered evidence).
  • Entry of Judgment: If no post-trial motions are filed, or if they are denied by the court, the judge will enter a judgment based on the jury’s verdict. This judgment specifies the amount of damages awarded to the plaintiff if the defendant was found liable.
  • Appeals: Either party may appeal the judgment to a higher court if they believe that legal errors were made during the trial that affected the outcome. Appeals are typically heard by appellate courts, which review the trial record and legal arguments presented by both parties.

Car Accident Settlement Takeaways

As you can see, the car accident settlement process can be a long, drawn out affair. Many plaintiffs must wait many months or even years before receiving compensation. Legally entitled plaintiffs generally seek car accident settlements to avoid these delays. Sometimes delays are unavoidable, leaving many plaintiffs in financial trouble.

Auto Accident Settlement Funding is an Option

When this situation arises, car accident lawsuit loans can be a viable solution. Lawsuit loans are financial transactions that keep plaintiffs financially afloat while they pursue justice. Plaintiffs use lawsuit funding to pay for all types of expenses, such as:

  • Medical treatment and surgery loans
  • Living expenses
  • Housing
  • Transportation
  • Past debts
  • School tuition
  • and more . . .

Why Choose Fair Rate Funding

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

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

Give us a call and learn about your options. We are here to help and are at your service.

Thank you for your interest in Fair Rate Funding.

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Soft Tissue Lawsuit Funding Help Injured Plaintiffs

Soft tissue lawsuit funding applications make up a fair amount of lawsuit funding inquiries.  A significant percentage of  applicants only apply for small lawsuit loans, sometimes less than $1,000.  While it may be true that even plaintiffs with very heavy injuries may only require a few additional dollars to meet their needs, the vast majority of these small lawsuit loans occur in connection with “soft tissue” lawsuits.

Soft-Tissue-Lawsuit-Funding
Soft-Tissue-Lawsuit-Funding

Defining “soft tissue” is not difficult.  The term was originally used to describe “whiplash” type injuries sustained in personal injury lawsuits.  Soft tissue essentially means that the injury, although severe, essentially involves a strain or sprain of muscles, flesh and body tissue as compared to broken bones, tears to ligaments, other connective tissue, or other more severe conditions.

Imaging equipment such as x-rays, MRI’s and CT Scanners, can show medical problems which exist under the skin’s surface.  Conditions such as ligament tears, herniated discs, and fractures are can be examined by doctors using these mediums.  Lawyers, medical experts and insurance adjusters are all able to see the extent these physical conditions objectively.

The use of imaging equipment is good news for plaintiffs who are seriously injured, since these injuries can be diagnosed with accuracy.

Insurance companies label injuries without objective evidence (e.g. x-ray findings of fracture or MRI tears) of injury as “soft tissue” injuries.  Essentially, a “soft tissue” injury is one where no abnormality can be found in one of the aforementioned imaging studies.

In the remainder of this article, we examine soft tissue personal injury lawsuits and as they relate to the lawsuit funding process.

“Soft Tissue” Defined

As previously mentioned, a soft tissue injury means an injury involving muscles or other tissue such as the typical “whiplash” injury where the patient suffers muscle strain from trauma.  Over the years, insurance companies and their attorneys sought to expand this definition a little further.  This expansion can have significant impact on an insurer’s bottom line because some state insurance laws (no-fault states) prohibit filing a suit for soft tissue injuries for the majority of the policies written.

Since Fair Rate Funding is based in the State of New Jersey, let’s use NJ as an example.  New Jersey’s “No-Fault” statute was enacted decades ago and was designed to provide protection for injured parties in the form of medical benefits.  The trade off was that in order to pursue a claim for pain and suffering, the injured party had to show “objective” evidence of permanent medical injury AND that the injury had a significant impact on his/her life (it should be noted that the insured could opt out of what is known as the “verbal threshold” but at a much higher premium payment).

What is “objective” became an issue at that time and was usually defined by a diagnostic imaging tests like those discussed above.  This standard remained in effect for years.

Recently, and not surprisingly, insurers are pushing to include positive imaging findings such as disc bulging and/or herniations into the ‘soft tissue’ box.  And in some jurisdictions, insurers have been persuasive.  Although a positive finding in an MRI used to meet the “objective evidence of injury” test in the past, defense attorneys are now trying to remove injuries with these types of findings from the pool of compensable injuries.

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What to Expect When Applying for Soft Tissue Lawsuit Funding

In light of the trend toward less and less coverage for these less severe but still extremely painful injuries, lawsuit funding companies must mitigate this additional risk in variety of ways.

One way is to eliminate lawsuit funding for soft tissue cases completely.  In fact, many settlement loan businesses will not consider automobile personal injury lawsuits for funding without a surgery.  Others may only consider automobile cases in which an imaging test has a positive finding of abnormality such as a bulge, tear or herniation.

Another way is to limit the funding amount.  When approved, a lawsuit with ‘soft tissue’ injuries are generally approved for settlement loans for $1,000 or less.

Lawsuit funding’s mission is to provide financial relief to litigants while they wait for their claim/lawsuit to be resolved.  Applicants often request small amounts of money for their lawsuit regardless of the severity of their injury.  If even small amounts of funding reach plaintiffs who need this assistance, then the mission is fulfilled.

Regardless, soft tissue lawsuits require the consideration of different issues for purposes of providing lawsuit funding to plaintiffs.

Thank you for your interest in the lawsuit funding – settlement loan business.

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Lawsuit Funding – The Advantages of this Financial Life Line

Lawsuit funding is an area of specialty finance in which plaintiffs sell a portion of their lawsuit for an immediate sum. The advantages of lawsuit funding are many and are discussed in this post.

Financial Trouble Needs Solutions

Individuals face money problems for a variety of reasons. Some are unemployed, living above their means and/or any other of the many reasons to be needing additional cash.  When financial challenges arise, wise individuals use their means to explore all available solutions.

Advantages of Lawsuit Funding

There’s obviously no shortage of money sloshing around in the economy.  Literally trillions of dollars are represented in the total money supply in the United States.  For many however, access to these funds may be limited.  For example, people with credit problems may have a hard time securing traditional loans. People with few assets to sell are another example.

Lawsuits – a Unique Asset Class

One doesn’t normally think of a civil lawsuit as an asset class but civil cases can be assets just like shares of stock or old sets of golf clubs.  Just as a person can sell his stock on the stock exchanges or his used golf equipment on ebay, a plaintiff with a certain type of lawsuit also has a salable asset.  The lawsuit funding industry provides a marketplace to sell a portion of this asset to allow plaintiffs to get settlement money early. This is a small, relatively small market but it does allow certain lawsuit plaintiffs to utilize the advantages of lawsuit funding to their benefit.

Lawsuit Funding Background

The lawsuit funding industry came about because plaintiffs needed money to pay their living expenses during litigation.  Because many jurisdictions lacked the resources to hear these cases quickly, plaintiffs were often required to endure a long, drawn out litigation process, which could last for years.  As a result, cash strapped clients were sometimes forced to accept “low ball” settlement offers simply because they needed the settlement money immediately.  Lawsuit settlement funding levels the financial playing field between plaintiffs and well funded insurance companies who defend personal injury lawsuits.

Because litigation loan companies technically purchase a portion of the case, pre-settlement lawsuit funding is an option to all plaintiffs who have a need for immediate cash.  Below is a list of the advantages of lawsuit funding.

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Lawsuit Funding Uses No Credit Checks

Lawsuit funding, also known as lawsuit or settlement loans are not technically “loans”.  Accordingly, the creditworthiness of the applicant is not an issue.  This is good news for applicants because many suffer from inadequate credit scores.  These individuals typically do not have other sources of funds available to them.

Lawsuit Funding is Not Repaid if the Case is Unsuccessful

Likewise, because lawsuit funding is a purchase of the future proceeds of the case, the lawsuit cash advance is considered “non-recourse”.  This means that if the case should happen to lose in court, the lawsuit funding is not repaid.  This is a benefit for clients because the lawsuit funding company shoulders the risk of loss.  If the case loses, the advance is simply written off as a loss by the company and no further collection is allowable under the contract.

No Monthly Payments Required

 Unlike many other types of financing, such as credit card cash advances or other loans, another lawsuit funding advantage is that NO monthly payments are required.  Instead, once the case is resolved is the only time the funding contract need be satisfied. This is an important advantage to lawsuit funding deals since many plaintiffs lack the monthly cash flow to make periodic payments. Accordingly, income verification, a normal requirement for traditional loan approvals, is irrelevant for lawsuit loans and not part of the approval process.

Lawsuit Funding is Flexible

Lawsuit loans provide flexibility. Although most settlement loan transactions involve personal injury lawsuits, the industry does routinely consider other civil matters for funding. The only per-requisites are:

  • There is a valid claim
  • The applicant is at least 18 years old
  • The applicant is represented by counsel

Unrestricted Use

One of the main advantages of lawsuit funding is that the money can be used at the plaintiff’s discretion. Most plaintiffs use the money to pay living expenses but any worthwhile use of the cash is appropriate. Some common uses include:

  • rent or housing payments
  • car or other transportation expenses
  • school tuition
  • investments
  • living expenses
  • and more

No Cost to Apply for Lawsuit Loans

Almost all lawsuit funding businesses offer free applications.  If the case is approved and funded, then and only then is the client required to repay the advance under certain conditions and only when the case is resolved.  The industry standard is that the applicant does not have to come “out of pocket” to apply for funding.  This makes sense, since the client is out of money to begin with.

Lawsuit Funding Offers Competitive Rates for Preferred Cases

Costs associated with lawsuit funding are often misunderstood.  This is due in no small part by the insurance companies and defense bar characterizing lawsuit funding as “loans” when they are in fact nothing of the sort.  Although the payback on most advances is calculated with interest, costs vary greatly.  Some companies have more expenses and must pass those costs along to the plaintiff.  Other companies have more “reasonable” charges.  If the plaintiff researches the available options, he/she will be able to find fast, low-interest lawsuit loans at the best possible terms.

Conclusion

The lawsuit funding industry came about because plaintiffs needed money to pay their living expenses while their case was pending.  Because many jurisdictions lacked the resources to hear these cases quickly, plaintiffs were often required to endure a long, drawn out litigation process, which could last for years.  As a result, cash strapped clients were sometimes forced to accept “low ball” settlement offers simply because they needed the settlement money immediately.  Lawsuit settlement funding seeks to level the financial playing field between plaintiffs and well funded insurance companies who defend personal injury lawsuits.

Although it is difficult to compare liquidity solutions for people in a financial bind, most available options contain good and bad attributes.  The advantages of lawsuit funding may very well fit into an individual’s needs.  Since every personal situation is different, each individual is in the best position to decide for himself what is in his own best interests.

Thank you for your interest in the advantages of lawsuit funding and the lawsuit settlement loan business.

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A FedEx truck driver has filed suit against the city of Memphis and its former Police Chief after an auto accident on June 23rd.

Auto Accident Settlement Funding
Auto Accident Settlement Funding

The civil action lawsuit, filed in Macomb County Circuit Court, stems from a two-car accident which left both vehicles totaled and left the FedEx truck driver, Sean Wood, seriously injured.

Former Police Chief, Beels Koveck, was driving a city police vehicle at the time of the accident. According to police reports, Koveck ran a stop sign on a gravel road and slammed into the side of Wood’s FedEx truck, sending the struck vehicle careening into a nearby ditch. Despite being found at fault, Koveck did not receive a citation from Michigan State Police who responded to the accident.

Woods suffered significant injury in the crash, requiring extensive corrective surgery to his ALS. Woods has been unable to return to work following the accident owing to his injury. Woods is seeking damages for pain and suffering, medical expenses, legal fees, and for lost wages.

“She admitted she ran the stop sign and witnesses state it was at a high rate of speed with no attempt to stop” said Christian P. Collis, Woods’ attorney, “So I don’t think it will be hard to show… gross negligence.”

Auto Accident Settlement Funding Helps Plaintiffs With Cash Now

That being said, Woods still has a long and difficult court battle ahead of him. Filing a lawsuit against a public official can result in a protracted and messy proceeding. As the case drags on, Woods’ medical cost fees will begin to mount, putting increasing pressure on him to accept an early ‘low ball’ offer as final settlement.

Settlement funding from Fair Rate Funding could help someone in Wood’s position endure the financial hardships of an extended legal battle. Auto accident settlement funding is a non-recourse cash advance available to plaintiffs in a variety of civil suit proceedings, including automobile accident suits. Settlement funding provides money in anticipation of a successful settlement of judgment; money that can be used to pay medical expenses, to compensate for lost wages, or for any expenditure the applicant decides. And if the borrower fails to win their case, the funds do not have to be paid back.

Unlike traditional loans, Auto accident settlement funding is awarded based on the strength of your suit, not your credit or employment history. The funds can be made available as little as 24 hours and there are no upfront fees associated with securing settlement funding. You don’t pay until you win your case. And if you don’t win, you are not required to repay anything.

If you or someone you know is going through the long and costly process of fighting for a fair settlement in an automobile accident lawsuit, consider obtaining Auto accident settlement funding. It can give you the financial flexibility to keep up your fight without feeling the pressure to settle for less than you deserve.

https://www.voicenews.com/articles/2014/10/28/news/doc544abba1dbda3657486895.txt

 

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A woman died in a motorcycle accident recently on Interstate 84. The victim was riding as a pillion passenger on a motorcycle on the eastbound lane in West Hartford, Connecticut.

The motorcycle came to an abrupt stop and crashed into a car in front. The motorcycle fell onto its side, throwing the driver and its passenger onto the road. The woman was then struck by another vehicle. The driver of the motorcycle and his passenger were taken to St. Francis Hospital where the passenger died, police reported.Settlement-Funding

Motorcycle accidents are some of the most horrific on our highways as motorcycle riders have little protection when they come into contact with either the ground or another motorized vehicle. In cars and trucks, including those equipped with airbags, accident victims have some protection which may prevent serious injury or death.

The cause of this accident has yet to be determined. Most likely, the passenger was not at fault. Her family members may pursue a wrongful death lawsuit to compensate for economic loss and loss of consortium and/or companionship.

Wrongful death lawsuits take time, sometimes even years. Meanwhile, plaintiffs may find themselves in need of financial support while they wait for the lawsuit to finally reach settlement. Monthly and other expenses cannot wait. Many litigants, especially those who lost a major household earner due to an accident, need an influx of cash to bridge the gap between the filing of the lawsuit and its ultimate conclusion.

Lawsuit Settlement Funding Helps Clients in Financial Distress

Settlement funding, sometimes referred to as ‘lawsuit loans’, ‘settlement loans’, or ‘lawsuit funding’, helps plaintiffs in their time of need by providing immediate cash to help litigants survive financially. In return, plaintiffs pledge a portion of the proceeds of the lawsuit, if any.

Anyone who has a pending or settled lawsuit, and is represented by an attorney can apply for settlement funding. Wrongful death lawsuits which are eligible for settlement funding must have an attorney retained on a contingency fee arrangement. That is, the attorney only earns a fee if the case is successful.

Likewise, lawsuit settlement funding proceeds are not repaid unless there is a successful recovery. As such, lawsuit loan contracts are deemed ‘non-recourse’ funding and are a risk free proposition for litigants.

There are no credit checks, no upfront costs and absolutely no restrictions on the use of the lawsuit cash advance.

Because of these reasons, and the risk free nature of settlement funding transactions, more and more plaintiffs are turning to settlement loans to solve their financial instability.

Source: https://foxct.com/2014/08/15/woman-dies-after-motorcycle-accident-on-i-84/

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How Lawyers Use Lawsuit Funding in Their Practices

The lawsuit funding business offers clients the ability to financially withstand a long, drawn out litigation process.  This post explores the ways in which attorneys benefit from lawsuit funding.

Attorneys Benefit from Lawsuit Funding by Helping Clients

Personal injuries are often serious. Many personal injury plaintiffs are simply unable to work.  This creates financial pressure on individuals since their expenses still must be paid.  Disability and/or workers compensation benefits might not be available for these victims and are therefore of little help to plaintiffs.  When available, they are often woefully insufficient to cover all of plaintiff’s obligations.

Attorneys Benefit from Lawsuit Funding

Most personal injury lawyers, in any jurisdiction, have clients ask for money as an advance on a future settlement. Yet most state ethical rules prohibit attorneys from loaning/advancing clients money in anticipation of a favorable outcome in their cases.  Some states allow attorneys to do so, but the money must be advanced without interest.  Until the pre-settlement loan business, plaintiffs simply had to hold on or worse, had to accept a lower settlement simply because of the financial pressure.

The purpose of lawsuit funding is to help plaintiffs meet their obligations while their cases are litigated.  Clients, and by extension their counsel, are relieved of immediate financial pressure.  The case can then be litigated properly, thoroughly, and to maximum value.

Cost Analysis

Now an argument can be made that the cost of lawsuit funding can outweigh any available increase in settlement value.  However, this analysis must be done in hindsight since only after a settlement can the true cost be ascertained and compared to a declined settlement offer.

While it is true that lawsuit loans carry higher interest rates than car loans or other traditional forms of financing, traditional loans are different products. So this comparison is also inadequate. Further, analyzing only interest rates is a narrow way of looking at what lawsuit funding actually achieves for clients and their attorneys. The best way to determine lawsuit loan cost is by examining the benefits these specialty financial products provide.

Simply put, whatever the situation the client is in, he is in that situation.  So the question then becomes how to help lessen the burden or otherwise better the client’s situation?

When it comes to a cost/benefit analysis, what is the value of a plaintiff keeping a roof over his head?

What would be the fees/penalties if he was forced to default on his mortgage, rent or any other obligation?

Further, since there are no restrictions on the use of lawsuit loan cash, plaintiffs are free to use the money as they see fit – including getting additional medical treatment which usually adds to potential settlement value. Unrestricted use of the funds also means plaintiffs can utilize lawsuit loan proceeds to make more money.  Frequently, clients use lawsuit funding for other business/investment opportunities.

The point is – true cost cannot be measured in general terms.  Each set of circumstances is unique. Thus, obtaining cash against a lawsuit can be more or less costly than any other means of securing funds especially when all other liquidity sources are exhausted.

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Maximum Settlement Value and More Business

On the list of valuable things lawyers should know about lawsuit funding, using lawsuit loans to increase case value is high on the list. When clients use lawsuit loans for surgeries, an increase in settlement value naturally results.

Yet, attorneys benefit from lawsuit funding also when clients refuse low-ball settlement offers simply because they need immediate funds. Common insurance company settlement tactics include offering less than fair compensation to test a plaintiff’s immediate need for cash. By refusing these offers, attorneys can litigate the case thoroughly and procure the maximum amount available – even if it includes going to trial to let a jury decide. Since attorneys fees are a percentage of the ultimate award for damages, attorneys benefit from lawsuit funding with an increase in fees. 

Perhaps more importantly, a client is more likely to be satisfied by the final result.  This enhances the attorney’s reputation and often assists in the settlement of future cases.

Further, in the personal injury game, word of mouth is the most effective form of legal marketing.  Repeat business is derived from successful outcomes in cases.  Life long clients are the life blood of any business.  Law practices are no different.  Clients are likely to retain counsel who is attentive to their wants, needs, and necessities.  Likewise, clients are more likely to refer their friends and family not to the attorney who refuses to cooperate with lawsuit funding companies, but to the lawyer who will go the extra mile to help.

Attorneys Benefit from Lawsuit Funding

The bottom line is the lawsuit funding industry helps clients who want and need help.  And by helping clients, attorneys benefit from lawsuit funding through increased settlement value and more client referrals.

Thank you for your interest in the lawsuit funding business.

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Lawsuit Funding NJ of Soft Tissue Cases

At Fair Rate Funding, we process over one thousand inquiries each month.  Our clients request funding amounts ranging from $1,000 to $400,000.  Also, we routinely receive applications for lawsuit funding amounts of less than $1,000.  Although some plaintiffs with “heavy” cases may only need a few bucks, the majority of our clients who are approved for less than $1,000 are involved in personal injury lawsuits with “soft tissue” injuries. Thus, if you live in NJ, these applications are for New Jersey soft tissue funding.

Defining Soft Tissue in New Jersey

How to define a soft tissue case has changed considerable throughout the years.  The term was originally used to describe “whiplash” type of injuries sustained in personal injury lawsuits such as automobile accidents.  Soft tissue was used to describe an injury which only involved muscles, flesh and body tissue such as a bruise, sprain or muscle spasm.  When comparing this type of injury with tears to ligaments, bone fractures, or other more severe conditions, soft tissue injuries were so categorized so as to minimize their severity.

NJ Soft Tissue Funding

The use of imaging equipment such as x-rays, MRI’s and CT Scanners, increased the accuracy in which injuries are diagnosed.  Conditions such as ligament tears, herniated discs between the vertebrae, fractures and other conditions are all objectively seen by doctors, lawyers and insurance companies through the use of these incredible machines.

In response, insurance companies took the liberty to label injuries without objective evidence (e.g. a positive x-ray for fracture) of injury as “soft tissue” injuries.  Generally, and as it pertains to orthopedic injuries, a “soft tissue” injury became defined as injuries where no abnormalities are found on any objective imaging study.

Redefining “Soft Tissue”?

As stated above, a soft tissue injury historically meant an injury involving the muscles and excluding more severe injuries such as those that can be seen on an imaging study like an MRI.  Over the years, insurance companies and their attorneys tried to expand this definition.  Currently, defense attorneys and their clients routinely attempt to include such positive findings disc bulging and/or herniations into the ‘soft tissue’ definition.  The argument being that even though it comes up on the study, the injury is not severe. 

For example, in no-fault auto insurance states such as New Jersey and New York, a positive finding of disc bulging in an MRI met the “objective evidence of injury” test in the past. Presently, defense attorneys attempt to remove injuries with these types of findings from the pool of compensable injuries. In many instances, this endeavor has been successful with many local judges dismissing cases despite positive diagnostic findings.

This is particularly troublesome for personal injury lawsuits with limited injuries and treatment since dismissing a case removes the prospect of trying the case before a jury. Instead, plaintiffs and their attorneys must weigh the cost of fighting the dismissal on appeal with any expected settlement. In some instances, appealing a dismissal is simply not worth the additional time and effort.

What to Expect When Applying for New Jersey Soft Tissue Funding

Because there is more limitation on these painful injuries, lawsuit funding operations must adjust their approach to help mitigate the additional risk.

One such adjustment is to eliminate the funding of soft tissue cases altogether.  Many lawsuit settlement funding businesses simply do not consider personal injury lawsuits involving slip and falls, or other premises liability injuries, without a surgery.  Some lawsuit funding companies only consider automobile cases which have a positive finding of abnormality on a MRI or CT Scan and some additional treatment such as extensive physical therapy, if there is no surgical intervention involved.

Another adjustment might be limiting the settlement loan amount.  When approved, NJ soft tissue funding generally involve $1,000 or less.

The mission of lawsuit funding as an industry is to provide financial relief to those unfortunate plaintiffs who face financial pressure while their lawsuit is pursued in the court system.  Applicants often request small amounts of funding against their lawsuit, regardless of the severity of their injury.  Small lawsuit funding amounts satisfy this mission as well provided the risk in providing them is adequately calculated.

Thanks you for your interest in New Jersey soft tissue funding.

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