lawsuit loan case types Archives

Discussing the Best Lawsuit Funding Case Types

Not all lawsuit funding case types are created equal. Some lawsuits are far more suitable for pre-settlement or post-settlement funding than others. In fact, understanding which types of claims make up the best lawsuit funding cases can help plaintiffs, attorneys, and funding companies alike make smarter, faster decisions.

In this post, we examine the best lawsuit funding case types, identify the pertinent criteria, and explain why these cases are ideal for legal funding. The idea is that if you’re considering lawsuit funding, this guide will help you recognize the best funding opportunities.

What Is a Lawsuit Funding Case?

Lawsuit funding, sometimes called legal funding or pre-settlement funding, is a financial lifeline for plaintiffs awaiting resolution of their legal claims. This type of funding allows injured parties to access a portion of their expected settlement upfront, helping cover essential living expenses, medical bills, or legal costs during the often lengthy litigation process.

Lawsuit Funding is an area of specialty finance. A typical lawsuit funding transaction involves a plaintiff and a funding company whose business it is to advance settlement money prior to recovery. The deal involves the sale of a portion of a future recovery. Lawsuit funding deals are structured as a transfer of property rights in part of the proceeds. As such, they are not loans in the traditional sense of the word.

Traditional loans imply repayment at some point in the future. Lawsuit “loans” are only repaid if a case is successful. This means the risk is different as lawsuit funding companies cannot pursue plaintiffs personally for repayment. If a case is lost, no repayment is required under the lawsuit loan contract.

A lawsuit funding case refers to any legal claim where a third-party lender provides this financial assistance in exchange for repayment from a future settlement or judgment. Since these are non-recourse advances, meaning the plaintiff owes nothing if the case is lost, funders must carefully evaluate which cases they support.

Characteristics of the Best Lawsuit Funding Cases

Before diving into specific case types, it’s important to understand what makes a case attractive from an investor’s perspective. The best lawsuit funding cases often share the following characteristics:

1. Clear Liability

Cases with strong, well-documented evidence of liability are easier to underwrite. Funders look for clear fault—whether that be a negligent driver in a car accident or a defective product manufacturer. Strong liability means a higher chance of settlement.

2. High Damages

Substantial injuries or financial losses increase the settlement value of a case. Funding companies prefer cases with serious injuries, significant wage loss, or long-term impairment that justify higher compensation.

3. Insurance Coverage

No matter how solid a claim is, it needs collectible funds at the end. Cases against insured defendants or large corporations with deep pockets are more likely to secure settlement funding.

4. Legal Representation

The involvement of an experienced attorney, particularly one working on a contingency fee basis, is critical. Reputable legal counsel ensures the case is being professionally managed and increases its likelihood of success. Attorney cooperation is a pre-requisite to funding since they are ultimately tasked with repayment after settlement.

5. Progress in Litigation

Cases that are closer to resolution or have already received settlement offers are more attractive. The further along a case is, the lower the risk of unexpected setbacks. This is not to say that newer cases do not qualify, only that more mature cases are preferred by reputable lawsuit funding companies.

Top 7 Best Lawsuit Funding Cases

Now that we’ve covered what makes a lawsuit funding case strong, let’s look at the seven most common types of cases that fit the profile of best lawsuit funding cases.

1. Auto Accident Claims

Car accidents, especially those involving rear-end collisions, distracted drivers, or intoxicated operators, are among the most frequently funded personal injury cases. There are many reasons why car accident loans are the most common. These reasons include:

Fault is often clearly established via police reports or traffic camera footage.
Insurance is usually available from at-fault drivers.
Medical records can demonstrate injury severity.
Quick claims processes make them easier to underwrite.

2. Slip and Fall (Premises Liability) Cases

These cases involve injuries sustained due to unsafe property conditions, such as wet floors, broken stairs, or poorly lit walkways. They are good candidates for funding because:

Many property owners carry liability insurance.
Cases are strong if the danger was known and unaddressed.
Medical evidence often clearly ties the fall to the injury.

Examples of slip and fall cases most suitable for funding include:

Falls in retail stores with security camera footage.
Injuries from ice or snow on managed properties.
Elderly victims with severe injury or disability.

3. Product Liability Cases

Product liability lawsuits involve defective products including faulty electronics to dangerous pharmaceuticals and medical devices.

Product liability lawsuits are often the best lawsuit funding cases because they target large manufacturers with significant insurance or assets. Liability is often established through expert testimony and/or recalls which make underwriting easier. And the settlements are often large enough to make sure there is enough settlement proceeds to repay lawsuit loans.

The best examples of product liability cases suitable for funding include:

Defective medical devices causing long-term harm.
Recalled automotive components leading to accidents.
Dangerous drugs with a history of side effects or fatalities.

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4. Medical Malpractice Lawsuits

Medical malpractice lawsuits make some of the best lawsuit funding cases. Like others on this list, Med Mal lawsuits are based in negligence. That is, the medical provider owed a duty of care to the plaintiff, which was breached and that breach caused plaintiff’s damages. Medical malpractice cases often involve surgical errors, misdiagnoses, or improper medication.

Med Mal lawsuits have high potential settlement values. They also generally involve detailed medical records which serve as strong evidence. In some instances, medical malpractice damages involve permanent injury or death.

Some of the best lawsuit funding case types involve:

Birth injuries requiring lifelong care.
Surgical errors with documented negligence.
Misdiagnosis leading to progression of serious illness.

5. Workplace Injury Cases (Third-Party Claims)

Third party cases involve injuries sustained while working but only apply when someone other than the employer is at fault. While standard workers’ compensation claims aren’t typically fundable, third-party liability lawsuits related to workplace injuries often are.

These cases often involve contractors, equipment manufacturers, or negligent third parties. The are examples of the best lawsuit funding cases because industrial or construction settings increase injury severity. Evidence of third party claims is also usually documented by OSHA investigations or workplace safety violations. This makes underwriting an easier endeavor.

Some of the best third party lawsuit funding case types involve:

Construction site injuries from faulty scaffolding.
Equipment-related amputations or paralysis.
Electrocutions or chemical burns caused by defective tools.

6. Wrongful Death Claims

Wrongful death lawsuits are civil lawsuits filed by the family or estate of a person who died due to another party’s negligence or intentional act. They are some of the best lawsuit funding cases for a variety of reasons. These reasons include:

Emotional and financial impact of a death leads to large settlements.
Involve multiple types of damages: lost income, companionship, funeral costs.
Frequently arise from clear-liability situations like DUIs or product failures.

Wrongful death cases arising from car accidents and other negligence cases are underwritten similarly. The reason for their suitability for funding is the potential for substantial recoveries.

7. Police Misconduct and Civil Rights Lawsuits

Though more complex, lawsuits involving excessive force, unlawful arrest, or other civil rights violations are increasingly funded. The growing public and legal support for civil rights victims is a primary reason. They mostly involve government entities with known insurance reserves and high-profile settlements or media coverage improve visibility and negotiation power.

The best examples of these types of lawsuits, most suitable for funding include:

Excessive force resulting in permanent injury or death.
Wrongful imprisonment with DNA exoneration or video evidence.
Police brutality caught on body cam or bystander footage.

Factors That Can Hurt an Otherwise Strong Case

Even the best lawsuit funding cases can lose their appeal if certain red flags appear:

Pre-existing injuries that complicate the damage assessment.
Gaps in medical treatment or missed follow-ups.
Questionable liability or shared fault among multiple parties.
Low insurance coverage, making full recovery unlikely.
Uncooperative plaintiffs, which can delay the legal process.

Lenders use these factors as part of their lawsuit loan approval processes.

Why the Best Lawsuit Funding Cases Matter

For plaintiffs, recognizing whether their case fits the profile of a best lawsuit funding case can speed up approval and increase the advance amount. For attorneys, understanding funder preferences ensures their clients receive fast, fair financial support without jeopardizing the case.

For funders, focusing on top-tier cases helps reduce risk and ensures sustainable business practices. By prioritizing cases with strong liability, high damages, solid documentation, and reputable legal representation, funding companies can serve clients more confidently.

Conclusion

Lawsuit funding provides critical relief to plaintiffs navigating the long road to justice. But not every case qualifies. The best lawsuit funding cases combine clear liability, substantial damages, strong documentation, and insured defendants. From car accidents and medical malpractice to wrongful death and product liability claims, these cases offer the best outcomes for all parties involved.

Whether you’re a plaintiff seeking funding, an attorney guiding your client, or a funder evaluating risk, knowing what makes a case stand out is key to a smooth and successful process.

If you believe you have one of the best lawsuit funding cases, don’t hesitate to explore your options. Legal funding could provide the support you need—when you need it most.

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 the 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.

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