Personal Injury

The Role of Lawsuit Funding in High-Value Personal Injury Cases

Posted on by Fast Funds
The Role of Lawsuit Funding in High-Value Personal Injury Cases
06
Aug

In personal injury litigation, high-value cases often involve significant financial challenges. Plaintiffs face the burden of substantial medical bills, loss of income, and ongoing expenses while they await a resolution. This financial pressure can lead to accepting a settlement offer that is far less than what they deserve. Lawsuit funding, also known as litigation funding or legal financing, plays a crucial role in empowering plaintiffs to pursue justice in high-value personal injury cases without succumbing to financial strain. This comprehensive guide delves into how lawsuit funding can be a game-changer for plaintiffs in these cases.

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Understanding High-Value Personal Injury Cases

High-value personal injury cases typically involve catastrophic injuries or wrongful death claims, where the stakes are significant both in terms of compensation and the impact on the plaintiff’s life. These cases often include severe injuries such as traumatic brain injuries, spinal cord injuries, and severe burns that result in lifelong medical needs, rehabilitation, and sometimes permanent disability. The compensation sought in such cases includes medical expenses, lost wages, future earnings, and damages for pain and suffering. With these high stakes, the legal process can be prolonged and arduous, requiring extensive investigation, testimony, and legal maneuvering.

Challenges Faced by Plaintiffs

Plaintiffs in high-value personal injury cases often find themselves caught in a challenging situation. The severity of their injuries means they cannot work, leading to a loss of income just when their medical bills are skyrocketing. This financial stress can force them to consider settlements that do not adequately cover their long-term needs. Insurance companies, aware of this pressure, often propose settlements that are lower than what the plaintiff could potentially receive at trial. 

This tactic is aimed at pressuring plaintiffs into quick settlements, allowing the insurance company to save money. As the legal process can take months or even years, plaintiffs are left in a precarious financial position, unable to cover their daily living expenses, medical bills, and other financial obligations.

What is Lawsuit Funding?

Lawsuit funding is a financial service that provides plaintiffs with a cash advance based on the potential value of their case. This funding is non-recourse, meaning the plaintiff only repays the advance if they win or settle their case. If the plaintiff loses, they owe nothing to the funding company. This arrangement shifts the financial risk away from the plaintiff, allowing them to focus on their recovery and legal proceedings without the added stress of immediate financial concerns.

- WHAT CLIENTS ARE SAYING -

In June, my wife and I asked our attorney about giving us a loan against any settlement proceeds from our case. He told us that the state bar does not
permit lawyers to participate in the financing of clients. The offer of settlement was very low so the case needed to be filed in court. I called Fast Funds. Within 24 hours, I had entered into an agreement with them, selling a very small portion of the anticipated proceeds to them in exchange for immediate financing. Now my suit is in court and I don't have to worry about money until it's outcome. Thank god for Fast Funds
B.G.
As a result of the advances you have made to our client, we were able to refuse an extremely low settlement offer and take the case to court. We settled the day of the trial for a very generous sum. Had there been no advances by Fast Funds, our client would have had no choice but to accept the inadequate offer since he was in severe debt due to his inability to work. Thank you for your helpful assistance in providing our client with the ability to persevere.
C.F.
I was involved in an accident which took my left leg. I was forced to live homeless for eleven months. Thanks to the Fast Funds people advancing money. I now live in an apartment,I am walking on a prosthetic and otherwise getting my life back together, even though my attorney has not yet settled my lawsuit. I don't know what I would have done for money because the insurance company has offered nothing so far.
A.R.S.
I was involved in an auto accident which caused me to suffer a herniated disc. Because of this injury, I was forced to miss many months of work. I had no income and no place or person to turn to for money. My attorney told me he was unable to help with any financing and the insurance company was refusing to settle the case. I turned to a company called Fast funds. They immediately reviewed my file and took the financial pressure off by providing me with interim financing. I am now able to wait for as long as it takes for my lawyer to achieve a successful result in my case. Without the financial involvement of Fast Funds, I don't know what I would have done.
K.P.
I wanted to thank you for your sensitivity in helping me cope through a very difficult time in my life. Without your help, I would have been unable to pay my rent , forcing my wife and children to be put on the street. I have not been able to return to work and I was tempted to accept the insurance company's very low offer to settle, even though I knew it was not fair or reasonable. You have given me the ability to withstand the financial pressures. Thanks for your help. I will never forget it
C.S.
I have in the past referred clients to Fast Funds Inc., a non-recourse company. The experience of my clients
and my firm were totally positive. Fast Funds was responsive to the clients financial and emotional needs, provided the necessary emergency money and did not interfere in any manner with my handling of the cases. The clients, without my input, negotiated the advance directly with the company. In each case, they were completely satisfied with the final result of the case, including the amount of profit earned by Fast Funds. Non-recourse funding is clearly a valuable tool to the plaintiff's attorney.
M.J.L.
"I am writing to recommend the valuable assistance of the Fast Funds Inc., a company that provided interim funding to financially needy clients. They help to insure that a case will be brought to a successful resolution. A good case in point is when I was offered $75,000.00 for a seriously injured client. Had she not been able to take advantage of the advance financing offered by Fast Funds, I would have been forced to take the money. As it turned out, because my client now had the financial ability to withstand the pressures of time, I tried the case to a jury and received a verdict of $315,000.00.
M.S.D.
It is my belief that non-recourse companies, such as Fast Funds, the company to whom I refer my needy clients, perform an invaluable service to both the client and the attorney. Simply put, it is common knowledge that one of the tools negotiation utilized by insurance companies is time. Offering
considerably less money than the actual case value to a client in desperate need of funds while the case is pending, gives the insurance companies a tremendous advantage. This advantage is minimized and the playing field is leveled when the client has the ability to obtain funds for a minimal portion of the anticipated proceeds. Many times, with no prospects of income, an injured party will settle the case for whatever offer is made.
R.J.F.

How Lawsuit Funding Works

The process of obtaining lawsuit funding involves several steps. Initially, the plaintiff applies for funding through a lawsuit funding company. The company evaluates the application by reviewing the details of the case, including medical records, police reports, and legal documentation. This evaluation is aimed at assessing the strength of the case and the likelihood of a favorable outcome. Based on this assessment, the funding company determines the amount of funding they are willing to offer. If the plaintiff accepts the terms, they receive a cash advance, which they can use to cover their expenses while their case is pending.

The Benefits of Lawsuit Funding

Lawsuit funding offers numerous benefits for plaintiffs in high-value personal injury cases. One of the most significant advantages is the ability to cover immediate financial needs without having to accept a low settlement offer. This financial breathing room allows plaintiffs to negotiate from a position of strength, often leading to higher settlements. Additionally, lawsuit funding enables plaintiffs to continue receiving necessary medical treatments and maintain their quality of life while they await the resolution of their case. With the financial pressure alleviated, plaintiffs can also afford to wait for the full legal process to unfold, which can be crucial in cases that require extensive investigation and testimony.

Enhancing Negotiation Power

One of the most critical aspects of lawsuit funding is how it enhances a plaintiff’s negotiation power. By providing financial stability, lawsuit funding allows plaintiffs to withstand the pressure from insurance companies to settle quickly. Plaintiffs who are not financially desperate are better positioned to reject low settlement offers and wait for an offer that truly reflects the value of their case. This strengthened position can lead to more favorable settlement terms and potentially higher compensation. In some instances, having the ability to go to trial, rather than settling due to financial pressure, can lead to a more just outcome for the plaintiff.

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Applying For Lawsuit Funding

Types of Cases We Fund

Access to Quality Legal Representation

High-value personal injury cases require strong legal representation to navigate the complexities of the legal system and to effectively counter the defense tactics used by insurance companies and other defendants. However, securing such representation can be expensive, especially when it involves witnesses, comprehensive investigations, and advanced legal strategies. Lawsuit funding can provide plaintiffs with the resources necessary to hire the best legal team possible, ensuring that their case is handled with the utmost attention to detail and professionalism. This access to top-tier legal representation can make a significant difference in the outcome of the case.

Focus on Recovery

Dealing with a severe personal injury involves not only physical recovery but also emotional and psychological healing. When plaintiffs are burdened with financial stress, it can impede their ability to focus on their recovery. Lawsuit funding alleviates this stress by covering essential expenses, allowing plaintiffs to prioritize their health and well-being. This peace of mind can have a positive impact on their recovery process, as they no longer have to worry about how they will pay their bills or support their families while they heal.

Lawsuit Funding and Legal Ethics

The ethical considerations of lawsuit funding have been a topic of debate in the legal community. However, many legal professionals recognize that lawsuit funding can level the playing field for plaintiffs who are up against well-funded defendants. Lawsuit funding is regulated by various state laws and industry standards to ensure transparency and fairness. Reputable lawsuit funding companies adhere to these regulations, providing clear terms and conditions to plaintiffs and ensuring that the funding process does not interfere with the attorney-client relationship or the litigation process.

Considerations Before Pursuing Lawsuit Funding

While lawsuit funding can be a powerful tool for plaintiffs, it is essential to consider several factors before pursuing it. Plaintiffs should conduct thorough research to find a reputable lawsuit funding company with transparent terms and reasonable fees. They should also consult with their attorney to ensure that obtaining funding aligns with their legal strategy and long-term goals. It is important to understand the terms of the funding agreement, including the repayment structure and any associated fees. This understanding will help plaintiffs make informed decisions about whether lawsuit funding is the right choice for their situation.

In high-value personal injury cases, plaintiffs often face significant financial challenges that can impact their ability to pursue justice effectively. Lawsuit funding offers a lifeline, providing the financial stability needed to withstand the pressure of lengthy litigation and low settlement offers. By empowering plaintiffs with the resources they need to cover their expenses, lawsuit funding allows them to focus on their recovery, hire quality legal representation, and negotiate from a position of strength. As a result, plaintiffs are better equipped to achieve a fair and just outcome in their cases.

Contact Us Today

At Fast Funds, we understand the challenges faced by plaintiffs in high-value personal injury cases. Our lawsuit funding solutions are designed to provide the financial support you need to pursue justice without compromise. If you are involved in a personal injury case and need financial assistance, contact Fast Funds today to learn more about how we can help you achieve the best possible outcome. Contact us today, and let us be your partner in this journey, providing you with the resources and support you need to navigate your legal battle successfully.