How to get Plaintiff financing?

Spread the love

What is Plaintiff Financing?

Plaintiff financing is risk free funding, that a plaintiff receives, mostly in advance, for a lawsuit that has a high probability of being settled in favor of the plaintiff. The compensation amount has to be good enough to satisfy all parties including the plaintiff, his or her lawyer, the lender and any other special parties, such as hospitals.

Characteristics of plaintiff financing

Plaintiff financing has the following main features:

  • Cash upfront; the plaintiff will receive cash before the case has been settled
  • The cash is given on a non-recourse basis. This means that if the plaintiff does not win the case he/she won’t have to pay back the money received through plaintiff financing
  • The defendant and or their insurance must be able to pay the damages
  • The case must have a good chance of success
  • The compensation must provide a sufficient margin for the lender
  • The cash can be used for daily expenses, such as daily sustenance expenses, rent and medical expenses
  • The plaintiff’s credit worthiness is not very important to the lender because they use other qualification criteria to determine whether to give the loan or not
  • Financing usually covers personal injuries, civil rights litigation, work related injuries and other lawsuits

Types of plaintiff lawsuits funded on a cash-in-advance basis

The main types of plaintiff lawsuits that are funded in cash in advance basis include;

  1. Pre-settlement cases/Accidents/Personal injuries
  2. Animal attacks e.g. dogs
  3. Assault and/or battery
  4. Brain injuries
  5. Aviation, car, truck and motorcycle accidents
  6. Pedestrian accidents
  7. Burn injuries
  8. Tort
  9. Wrongful death
  10. Birth injuries
  11. Commercial litigation lawsuits
  12. Class action           
  13. Securities fraud   
  14. Contract disputes
  15. Franchise protection
  16. Discrimination    
  17. Intellectual property
  18. Antitrust  
  19. Harassment
  20. Breach of contract                           
  21. Patent infringement
  22. Environmental Litigation            
  23. Product liability
  24. Financial malpractice      
  25. Real estate disputes
  26. Wrongful termination

Why choose Plaintiff financing instead of bank financing?

Banks will lend you the money with normal banking requirements that may not take into account the processes of the justice system. For example, if you lose your case, a bank will still demand that you pay back the loan, but with plaintiff financing you don’t have to pay back.

With plaintiff financing and lawsuit funding companies, since the lender does a lot of due diligence to determine if the plaintiff will win the case, the plaintiff is more assured of winning. With the bank, no consideration into the merits of the case is made.

With a bank your credit worthiness is paramount, but with plaintiff financing, the determination of the case is the main consideration and not the credit worthiness of the plaintiff.

What is the plaintiff funding procedure?

1. An application form is filled in and the applicant’s eligibility is determined. The application form collects personal information about the applicant.

2. The plaintiff financier will request for information from the plaintiff’s lawyer/attorney and the plaintiff’s lawyer will then put the requested documentation together and send it to the plaintiff financier.

3.  The paperwork is then reviewed by the lender. During this stag the lender could call the plaintiff’s lawyer to confirm some issues. If everything is found to be in order, then the advance is processed.

4. Money is then transferred to the plaintiff and the transaction is complete.

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *