Most Common Lawsuit Loans
All lawsuit loan types are not created equal. In this post, we examine the 3 most common lawsuit loans in our 15+ years in the business.
Common Case Types in Civil Court
Lawsuit loans are transactions which transfer a portion of a future settlement in civil actions, which are disputes between private parties. Civil lawsuits can include a wide variety of case types and involve numerous legal issues.
The majority of civil lawsuits involve the following:
- Torts – a “tort” is a wrongful act that results in injury to someone’s person, property, or reputation, for which the injured person is entitled to compensation under the law. Examples of tort cases include assault and battery, defamation, fraud and negligence.
- Breach of contract claims – breach of contract actions arise from one parties failure to perform or live up to some contract term. This failure to adhere to the agreement is deemed a breach and the other party can sue for damages.
- Landlord/tenant claims – disputes between landlords and their tenants are decided in the civil courts. Evictions or disputes involving lease terms are handled in civil courts. Many court systems have special “landlord-tenant” divisions specifically to adjudicate these claims.
Importantly, most civil claims are not candidates for lawsuit loans. The only case type on the above list that include the most common lawsuit loans involve tort claims. This is because there are often significant amounts of money at stake, plaintiffs are represented by counsel, and the attorneys’ fees are dependent upon successful outcomes. Legal fees are generally not “fundable”.
Most Common Cases = Most Common Lawsuit Loans?
At first blush, examining the most common lawsuit loan case types should be fairly straightforward. That is, the most common lawsuits should be represented in the top 3 list in the order of their volume (or close to it anyway). This is not accurate however, since lawsuit loans are entirely dependent upon each plaintiff’s unique situation.
Lawsuit Loans Where There is a Need
Lawsuit loans are advances on future lawsuit settlements. The purpose of settlement loans is to level the playing field between financially strong insurance companies and individual plaintiffs. Thus, the need for funding is of primary importance when discussing the most common lawsuit loans.
People encounter financial stress for a variety of reasons. For lawsuit plaintiffs, financial trouble often is a result of the facts and circumstances that give rise to their specific lawsuits. Consider a personal injury plaintiff who is injured on the job. This plaintiff’s injuries can be compensated by workers’ compensation benefits but those amounts are usually far less than adequate to make ends meet. This is especially true when you learn that most Americans are living paycheck to paycheck. Cash flow is what keeps most citizens afloat financially. Lower the amount that comes in monthly, and financial turmoil ensues.
In light of the above, it is probably not surprising to learn the most common lawsuit loan lawsuit types involve either personal injury or the loss of one’s earning capacity in some way.
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Most Common Lawsuit Loan Type #1
The most common lawsuit loan aligns with the most common personal injury lawsuit type- the car accident lawsuit. Car accident lawsuit loans involve claims for property damage, personal injuries, loss of income and lost earning capacity. It is not surprising that the inability to earn as much as before an accident is a driving force behind car accident loans as the most common lawsuit loan type.
Auto accident lawsuit funding is a favorite among funding companies as well. This is because liability is easy to establish based upon the “rules of the road”, there is often an insurance policy in place, and damages, although involving specific injuries to a specific client, can be estimated based upon historical data and underwriter experience. Further, car accident plaintiffs normally retain their attorneys on a contingency fee arrangement. This means the lawyers believe in the merits of the case, since they are investing their time and costs in each specific case.
#2 Slip and Fall Lawsuit Loans
Slip and fall lawsuits are another of the most common lawsuit loans. Just like car accidents, slip and fall plaintiffs suffer serious injuries which likely cause a drop in their monthly income. Like car accidents cases, slip and fall lawsuits are based in negligence. Unlike automobile accidents, liability is sometimes difficult to prove due to notice requirements.
Thus, slip and fall lawsuits are sometimes difficult to litigate and may take a long time to reach a settlement. Of course, plaintiffs’ expenses still must be paid and for those who have monthly cash flow issues, lawsuit loans can help bridge the gap between an accident and recovery. For these reasons, slip and fall funding ranks second of the most common lawsuit loans.
#3 – Third Party Lawsuits
The third most common lawsuit loans involve third party cases. Also based in negligence, third party actions arise when a worker is injured but the accident was due to a party other than his/her employer. Consider an Amazon delivery worker driving door to door in the course of his/her employment. At an intersection, another driver runs a stop sign and injures the worker. That worker has a workers’ compensation claim against the employer, and also a potential third party claim against the at-fault driver. The other driver is known as the third party and the reason for the term “third party lawsuit”.
Third party lawsuits are common negligence actions and most lawsuit funding companies receive multiple requests for third party lawsuit loans daily. All injured workers face a common issue – financial stress due to their inability to work after an accident. Crowded dockets cause delays in recovery so plaintiffs always need the financial staying power to endure the litigation process. Third party lawsuit loans are one possible solution.The lawsuit funding industry was born in response to this situation.
Above we list the top 3 most common lawsuit loan types. Although these are currently the most common, lawsuit loans are a viable source of immediate funds for plaintiffs with a large variety of cases. These include:
- Animal & Dog Bites
- Amusement Park Accidents
- Automobile Accidents
- Asbestos Cases
- Aviation Accidents
- Bicycle Accidents
- Boating Accidents
- Bus Accidents
- Construction Accidents
- Defective Products
- Maritime cases
- Medical Malpractice
- Motorcycle Accidents
- Motor Vehicle Accidents
- Nursing Home Negligence
- Pedestrian Accidents
- Premises Liability
- and others . . .
If you have a lawsuit, an attorney and need financial support, you are eligible to apply for fast lawsuit loans as a possible solution. To get started, simply contact us or give us a call. We are here to help and are at your service.
Thank you for your interest in the most common lawsuit loans and Fair Rate Funding.