Pre-settlement litigation funding is a non-recourse
cash advance, provided to an injured person in return for a promise
to repay the advance after you win your lawsuit. The advance covers
medical and health care related costs, expert witness, research, and
attorney fees. Ideally, the suit should be at least 4 months old with
the likelihood that it will settle in no more than 18 months.
The pre-settlement funding source would fund the
client approximately 10-20% of the expected judgment in return for a
lien against the entire award remaining. This lien follows any lien
placed on the case for attorney or medical fees. By keeping the funded
amount small, and by getting involved after a certain amount of time
has passed, the actual cost to the client is very small relative to
their increased gain.
What are the Advantages of Litigation Funding to My Client?
Pre-settlement litigation funding allows you, the
attorney, to help those clients to receive a much larger settlement:
if they could just hold out a little longer. It gives you the advantage
of time to use your negotiating skills to achieve the maximum settlement
for your client!