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.
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.
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.
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.
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.
If You Have Any Questions, Call 888-964-2224
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.
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.