What is Lawsuit Funding?

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.

Outside Interpretations of Lawsuit Funding

According to Wikipedia.org, "Legal financing, also known as litigation financing, professional funding or third party funding is the funding of a legal practice or of specific litigation though a loan or other means by specialized firms (often Hedge funds) which deal in professional financing.[1]

Legal financing is a mechanism through which a litigant can finance their litigation costs by entering into an agreement with a third party funding company. Third party funders are companies who treat litigation as an investment; in exchange for agreeing to finance some or all of a litigants litigation expenses, the funder will charge the client a fee (normally an agreed percentage of proceeds recovered by the client in the litigation). This fee is normally referred to as a contingency fee. Typically, if the litigant loses the case, the funder receives nothing and loses the money they have invested in the case, whereas if the litigant wins the case, the funder expects to be paid its share of the award."

Types of Lawsuit Funding

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.

Pre Settlement Lawsuit Funding

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.

Post Settlement Lawsuit Funding

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.

How to Get Lawsuit Funding

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.

What types of lawsuits are applicable for lawsuit funding?

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.

Case Funding provides lawsuit funding for the following lawsuit types, on a case by case basis:

Personal Injury Cases, including:

Pharmaceutical Cases, including:

  • Accutane
  • Avandia
  • Baycol
  • Fen Phen
  • HRT
  • Ortho Evra
  • Paxil
  • Prempro
  • Vioxx
  • Zyprexa

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.

Did We Miss Your Lawsuit Type? No Worries.

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.

How Are Attorney Loans Different From Lawsuit Funding?

Attorney loans are not to be confused with lawsuit funding. Attorney loans are directed at helping the attorney themselves to be able to handle the expenses and such of the cases that they are handling. Lawsuit funding is an advance issued to a plaintiff contingent upon the eventual receipt of a settlement at the end of their case. Lawsuit funding helps plaintiffs manage their day to day life expenses, whereas attorney loans go towards paying the extensive costs of completing a lawsuit.

How can Case Funding help me or my attorney?

We help level the playing field by providing lawsuit funding for you or your attorney to compete effectively against insurance companies, large corporations, and other deep-pocketed defendants.

How is Case Funding different for Plaintiffs?

Non-recourse funding is different than a lawsuit loan. Unlike loans, advances don't require you to put up collateral; you don't need good credit; and if you lose your case, you pay nothing and owe us nothing! We give you money based only on the strength of your lawsuit, because our lawsuit funding is repaid only if you win money from your case. While your case is pending, you do not owe any installment or interest payments. You pay nothing until your lawsuit resolves.

A Leader in Lawsuit Funding

Case Funding is a leading direct provider of innovative non-recourse funding solutions for plaintiffs and attorneys who have pending lawsuits and pressing financial needs. For attorneys, our capital enables you to invest in your cases, expand your case load or even pay everyday operating expenses.

Our Services

Case Funding's programs provide plaintiffs and litigation attorneys with short-term financing by advancing money against the future proceeds of lawsuits. Case Funding minimizes financial pressures on plaintiffs until a fair settlement can be reached. For plaintiffs, CaseFunding provides non-recourse cash advances on pending lawsuits. Case Funding works with attorneys to create a financial package that meets their law firm's cash flow needs, whether in the form of full-recourse loans, or line-of-credit facilities.