Lawsuit Funding in the United States

Introduction to Lawsuit Loans

Lawsuit funding is a term that is used throughout the legal industry as a cash advance. There are essentially four different types of lawsuit funding options. You can find these option under funding types. There are many companies that provide lawsuit funding, however, each company may have their own knack. Some companies specialize in structured settlements while others prefer pre settlement funding. It is important that prior to accepting an advance from any lawsuit funding company you read over the terms and agreements of their contract.

Lawsuit funding for plaintiffs is a lawsuit cash advance against a pending personal injury or commercial litigation case. Another term for lawsuit funding is settlement advances. Most lawsuit funding companies will provide non recourse loans for each of their clients. This means you don’t pay back the loan unless your attorney wins compensation for your case. Lawsuit funding can be used to help pay for expenses while a case is reaching a settlement. For some people who apply for lawsuit funding its a way to help keep their case open without having to settle for less compensation. A personal injury attorney will always advise their client to seek ongoing medical treatment during the negotiation or arbitration process. Once a plaintiff has accepted personal injury compensation they will not be able to seek additional compensation at a later date. Many people will accept less compensation because they are in need of cash.

It may be a good idea never to settle a case without fully understanding all expenses surrounding the case. A personal injury attorney can advise you on how much money they believe your case is worth. For those individuals that are seeking compensation from an insurance company a settlement may take longer than expected. Most companies have the representation of experienced defense lawyers with deep pockets. Their main objective may be to prolong the case in hopes the plaintiff settles for less money. Lawsuit funding can be essential for individuals that don’t have the financial backing in waiting for their case to reach a settlement.

For those people that have been involved in a personal injury you should know you have one shot in getting full compensation for your case. While lawsuit funding is not for everyone, for those people who decide to use lawsuit funding as an alternative financial stop gap, it could be mean the difference of full compensation compared to partial compensation.

British petroleum lawsuit loans

Introduction

Some companies provide lawsuit funding in the form of attorney funding, a lawsuit cash advance or lawsuit loan to fishing boat operators, and commercial business who have a B.P. Gulf Oil Spill claim.

In 2012, British Petroleum (BP) estimated that it would pay about $8.2 billion in settlements for damages caused by the 2010 oil spill in the Gulf of Mexico. In 2013, according to a report, the company has stated that that amount was most likely a significant underestimation. Businesses and individuals who suffered damages from the oil spill may be eligible to file a lawsuit against the company to recover losses, though they now have only about 11 more months to do so. To date, over 165,000 claims have been filed, with an estimated total value of $3.2 billion.

Payouts have not yet begun, however, leaving claimants to manage on their own in the meantime. For some, BP oil spill lawsuit funding may provide a helpful option in coping with financial burdens.

Persons eligible for economic claims

The Deepwater Horizon Claims Center, which is overseeing the multibillion-dollar settlement between BP and private claimants, has already awarded settlements to a variety of plaintiffs.

Those who have suffered economic damages as a result of the spill are advised to speak with an attorney about their potential eligibility to file a claim. Examples of those who could recover damages include:
•Fishermen
•Deep sea fishing charter boats
•Restaurants
•Hotels
•Property owners

On a broader level, any business that experienced even a slight decrease in earnings for at least three months between May and December of 2010 could potentially receive compensation for loss of business profits, loss of revenue, loss of ability to earn a living, and more. These may include churches and nonprofit agencies, private schools, and car dealerships.

Medical claims

Medical benefits are also available under the BP settlement agreement. Again, a variety of individuals may be eligible to file a claim, including any who suffered from serious health problems following the spill. Some examples include:
•Clean-up workers
•Those who decontaminated wildlife and response vessels
•Residents who lived near the Gulf between April and September 2010
•On-and-offshore responders

Potential health conditions that may qualify for claims include acute and chronic respiratory and gastrointestinal problems, as well as eye, skin, and nervous system conditions. These ailments must have developed within the timeframe of the spill and the resulting clean-up efforts, or after exposure to the oil or chemical dispersants used in the clean-up process.

BP oil spill lawsuit funding

Though settlements have been awarded, so far payouts have not been made. Payments to claimants may begin as early as June 2013, but that is just an estimate and would apply only to some plaintiffs. A recent request to the United Kingdom government by BP to intervene in what it says are “overly large payments to companies in the Gulf Coast” may further delay proceedings.

Individuals who have suffered medical complications from the spill may be facing the financial difficulty of managing costs of medical treatment and prescription medication. Business owners are likely still running the business, but may be dealing with cash flow problems or overwhelming repair costs. Though some may choose to wait it out for their settlement funds, others may find the option of pre settlement funding for plaintiffs to be helpful.

BP oil spill lawsuit funding provides a cash advance on future expected earnings from a BP settlement. Designed to help plaintiffs cover costs while waiting for their cases to resolve, it involves no risk. Those who receive a settlement on their claims can pay the money back at that time, but if the case is unsuccessful, the plaintiff owes no money.

Commercial lawsuit funding and Commercial lawsuit loans

Commercial litigation financing is a lawsuit cash advance against a pending or already settled claim. Commercial litigation financing is much harder today to obtain than past years. There are only several hedge funds that will provide this type of financing due to the amount of time it takes to settle or win a verdict. There are companies that advertise these types of cases however very few will actually provide the funding.

These types of cases generally take years to settle because so much is at stake. In some cases even when a case reaches a settlement or verdict, the plaintiff could be waiting months before they see the first dollar. It is also very likely the case will be appealed prolonging the inevitable.

When a person or company acts in a negligent or unlawful manner which negatively effects another person they can be held liable for damages. Unlike a personal injury where the damages are almost always injuries, commercial cases oftentimes come in the form of financial damages.

Some of the common commercial litigation claims include:
•Breach of Contract or Contract Disputes
•Copyright or Patent Infringement
•Discrimination Cases
•Environmental Litigation
•Securities Fraud
•Franchise Litigation
•Oil & Gas Litigation
•Antitrust
•Financial Malpractice
•Real Estate Disputes
•Wrongful Termination

Commercial litigation financing can be used for several purposes:

If a person has filed a lawsuit they may need the money to pay for loss of wages, living expenses, a purchase of a new home or car, help pay for insurance or for a new business venture.

If a company is applying for commercial litigation financing oftentimes the money is used to help meet payroll expenses, rent costs, insurance expenses, marketing and advertising, adding additional employees or reinvesting in the company.

Pre Settlement Funding

Some business offer advances to plaintiffs against the future proceeds of their claim. This form of lending allows the client to borrow money on a non recourse basis. This means by chance if the client loses his/her personal injury suit, he/she don’t have to repay the funding back.

Personal injury claims can take months and even years before they mature. While some people can absorb the expenses related to such a timely process, many can’t. Pre settlement funding companies were established to help plaintiffs through the litigation process. This tool can provide a financial stop gap between being forced into an early settlement and getting a full recovery for your lawsuit. If you are being forced into a settlement due to a pressing financial need, and not interested in settling your case for less, contact LawLeaf today.

Pre Settlement Funding Process

Once the company has received the application, it will gather the information and documentation needed to begin processing the file. The amount of money and payment schedule is based upon the strength and the value of the case.

Lawsuit Funding