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Lawsuit Funding
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Last Updated: July 27, 2010

Lawsuit Funding is simply funding that has been made available to a party involved in a lawsuit. Lawsuit funding may have been provided by a individual, or a company who seeks an interest in the proceeds of a lawsuit. Since lawsuit funding is a relativly broad term, it is often used to describe many different types of lawsuit related funding options. Generally, the major parties involved in a lawsuit funding transaction are a plaintiff, their attorney, and a lawsuit funding provider who receives fees or, in some cases, interest upon the maturity of their funding agreement. Lawsuit funding, however, can come in many forms including loans and cash advances, and can be described by alternative terms like legal funding or lawsuit money. Most states have their own ethical guidelines regarding how funding companies can operate and interact with plaintiffs and their attorneys.
"Litigation funding is a practice in which individuals who are plaintiffs in lawsuits receive money from firms and individuals who take a lien on the proceeds of a personal injury suit in return for ready cash. It is not considered a loan as the money does not have to be repaid if the plaintiff's lawsuit is unsuccessful; it is nonrecourse debt. Funding companies also advance money to attorneys against anticipated legal fees earned in a personal injury matter."
Lawsuit Funding is one of the the most searched legal terms, but it is not always the most accurate term for the type of funding options it describes. For example, some plaintiffs seek funding before they have filed a lawsuit, in order to obtain an attorney. This type of funding might be more accurately described as simply legal aid, because they have not yet filed a lawsuit.
Another example would be for a plaintiff, who is seeking funding after their lawsuit has been filed, but before their lawsuit has been settled or has gone to trial. This type of funding option may be better described as pre-settlement funding, since it is being sought after the filing, but before settlement of the plaintiff's lawsuit. It is during this period of the legal process when plaintiffs experience the most financial hardships, and therefore need the most assistance. This can be caused by many different problems, such as the defendant simply prolonging the lawsuit to avoid a settlement.
Finally, there are certain situations in which a plaintiff may have seen their lawsuit filed and settled, only to wait for their funding to be disbursed. This type of lawsuit funding may be better described as post-settlement funding, since it is funding need after settlement, but before money has been received by the plaintiff.
Lawsuit funding is usually obtained through funding companies who specialize in legal financial services. Lawsuit funding is often based on the strength of the lawsuit at hand, and most companies don't even perform credit checks. The process usually starts out with a lawsuit funding application, a review of the lawsuit, and a brief interview with the attorney involved. Next, there is some sort of funding agreement (a contract), and finally, funds are issued. Most funding companies strive to streamline the funding process, which makes it faster and easier for plaintiffs to receive the necessary funds. While the process usually seems simple, it is highly advisable—just like with any financial contract—for plaintiffs to discuss the funding agreement, thoroughly, with his or her attorney prior to signing. Also, plaintiffs should pay close attention to the terms, fees, and precentages that must be met upon the signing of the agreement.
Funding companies will advance money to plaintiffs for most types of lawsuits. Basically, if a plaintiff's lawsuit stands to receive money, most assuredly, there is a funding company, somewhere, that will advance money against it.

Currently, CaseFunding only advances lawsuit funding for the following lawsuit types, on a case by case basis:

Personal Injury Cases, including: Asbestos/Mesothelioma Assault Aviation Accidents Car Accidents Motorcycle Accidents Back Wages Burn Injuries Ceiling Collapse General Negligence Jones Act/FELA Cases Labor Law Medical Malpractice/Dental Malpractice Nursing Home Abuse Commercial Litigation Police Brutality Premises Liability Product Liability Sexual Harassment Slip & Fall/Trip & Fall Whistleblower/Qui Tam Wrongful Death Wrongful Imprisonment Wrongful Termination

Pharmaceutical Cases, including: Accutane Avandia Baycol Fen Phen HRT Ortho Evra Paxil Prempro Vioxx Zyprexa

If you didn't see your lawsuit type listed, that doesn't necessarily mean we don't fund your type of lawsuit, or that your lawsuit doesn't stand to receive money. If you don't see your case, and want to apply for lawsuit funding, call us (1.800.790.9992). We add new lawsuit types regularly.