The Court Of Public Opinion

Litigation funding can be a confusing concept. Plus, most people have never been exposed to the concept of litigation funding so the average person probably has many questions such as: What is a litigation funding? Do I need litigation funding? How do I get funding for my lawsuit? When I am approved for funding, do I have to pay back the money? If I am denied funding does it mean that I do not have a good case? These are all very good questions and are answered below.

What is litigation funding?
Litigation funding is not a ?loan? at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Litigation funding companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan. Litigation funding is not based on a plaintiff?s prior credit or bankruptcy status. Other terms used for this type of funding include: lawsuit loan, litigation finance, litigation loan, lawsuit funding, lawsuit finance, lawsuit cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need litigation funding?
Litigation funding should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you. Too many plaintiffs apply for litigation funding with the belief that litigation funding is simply a different way to get their settlement money. Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first. Also, a good guideline to use is that litigation funding companies generally advance up to 10% of the estimated settlement amount. There are some good internet sites that give more background on litigation funding. Some good sources of information are The Funding Exchange (www.TheFundingExchange.com) and Expert Law (www.expertlaw.com).

How do I get funding for my lawsuit?
Litigation funding companies have popped-up all over the country. Some tout their ?low interest rates? or how they are the most lenient when it comes to approving litigation funding. Many litigation finance companies charge random penalties and fees. These penalties and fees help to offset their ?low interest rates? and many times end-up costing the plaintiff more of their settlement. A good option is The Funding Exchange (www.TheFundingExchange.com). The Funding Exchange is a network of the most respected litigation funding companies in the industry. You complete one application on The Funding Exchange and your application is intelligently routed to the best litigation funding companies for your specific case.

When I am approved for funding, do I have to pay back the money? Almost all litigation funding companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then you can keep the cash advance with no obligation. If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees. The amount owed to a litigation funding company increases the longer that your case takes to settle so keep that in mind.

If I am denied funding does it mean that I do not have a good case? The simple answer is ?no.? Being denied for funding does not mean that your case is not a good case or that you will actually win less money than you think. There are many different reasons why funding is denied. One reason is that the estimated settlement date is too soon. Litigation finance companies make money by accruing interest on their investment in your case. If your case is supposed to settle in 2 months then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request. Other reasons for denying funding include: attorney will not provide documentation, attorney will not sign contract, plaintiff demands too much money, etc.

Conclusion
As a plaintiff, you should understand litigation funding and the process of securing funding before you apply. If your expectations are set correctly and you proceed with litigation funding then you will find that it is a saving grace in the turbulent world of litigation. If you apply for litigation funding without a true understanding then you may be disappointed.

About the author: Tony Perkins is the founder and president of The Funding Exchange (http://www.TheFundingExchange.com) which connects the top litigation funding companies in the country to people in need of a lawsuit loan. The Funding Exchange is not a litigation funding company but rather it is an independent 3rd party company that routes a high volume of applications every day to its network of litigation finance companies. Mr. Perkins has unbiased experience in helping secure litigation funding.
Copyright 2006 The Funding Exchange, LLC

Lawsuit cash advances can be confusing especially for someone who was recently introduced to the concept. What is a lawsuit cash advance? Do I need lawsuit cash advance? How do I get funding for my lawsuit? When I am approved for lawsuit cash advance, do I have to pay back the money? If I am denied funding does it mean that I do not have a good case? These are all very good questions and the following text will answer these questions and more.

What is lawsuit cash advance?
A lawsuit cash advance is not a ?loan? at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Lawsuit cash advance companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan. A lawsuit cash advance is not based on a plaintiff?s prior credit or bankruptcy status. Other terms used for this type of funding include: lawsuit loan, litigation finance, litigation loan, lawsuit funding, lawsuit finance, litigation cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need lawsuit cash advance?
Lawsuit cash advances should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you. Too many plaintiffs apply for a lawsuit cash advance with the belief that a lawsuit cash advance is simply a different way to get their settlement money. Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first. Also, a good guideline to use is that lawsuit cash advance companies generally advance up to 10% of the estimated settlement amount. There are some good internet sites that give more background on lawsuit cash advances. Some good sources of information are The Funding Exchange (www.TheFundingExchange.com) and Expert Law (www.expertlaw.com).

How do I get funding for my lawsuit?
Lawsuit lending companies have popped-up all over the country. Some tout their ?low interest rates? or how they are the most lenient when it comes to approving lawsuit loans. For every 1 respected lawsuit lending company there are 3 that will do anything to charge plaintiffs random penalties that make no sense. These penalties help to offset their ?low interest rates? and many times end-up costing the plaintiff more of their settlement. A good option is The Funding Exchange (www.TheFundingExchange.com). The Funding Exchange is a network of the most respected lawsuit lending companies in the industry. You complete one application on The Funding Exchange and your application is intelligently routed to the best lending companies for your specific situation.

If I get a lawsuit cash advance, do I have to pay back the money?
Almost all lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then you can keep the cash advance with no obligation. If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees. The amount owed to a litigation finance company increases the longer that your case takes to settle so keep that in mind.

If I am denied funding does it mean that I do not have a good case?
The simple answer is ?no.? Being denied for a lawsuit cash advance does not mean that your case is not a good case or that you will actually win less money than you think. There are many different reasons why funding is denied. One reason is that the estimated settlement date is too soon. Litigation finance companies make money by accruing interest on their investment in your case. If your case is supposed to settle in 2 months then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request. Other reasons for denying lawsuit loan applications include: attorney will not provide documentation, attorney will not sign contract, plaintiff demands too much money, etc.

Conclusion
As a plaintiff, you should understand lawsuit cash advances and the process of securing a lawsuit cash advance before you apply. If your expectations are set correctly and you proceed with a lawsuit cash advance then you will find that it is a saving grace in the turbulent world of litigation. If you apply for a lawsuit cash advance without an understanding of litigation finance then you may be disappointed.

About the author:

Tony Perkins is the founder and president of The Funding Exchange (http://www.TheFundingExchange.com) which connects the top lawsuit lending companies in the country to people in need of a lawsuit loan. The Funding Exchange is not a lawsuit lending company but rather it is an independent 3rd party company that routes a high volume of applications every day to its network of lawsuit cash advance companies.

Pre settlement lawsuit funding is a relatively new concept. The funding companies extend non-recourse loans to claimants who do not have sufficient funds to take on a legal battle to settle their personal injury cases. Personal injury cases can include: any automobile accident, medical or legal malpractice, harassment or discrimination at work, and sexual abuse or rape.

Consider a scenario where the claimant does not have sufficient funds to fight the legal battle. Besides, he may also require money for his personal needs such as medical expenses in case of a physical injury. He then has the option to approach any of the pre-settlement lawsuit funding companies for funds. These companies will first study the merit of the case. For this, they may seek the help of the claimant?s lawyer to study the merit of the case and also to get an idea of the anticipated settlement amount. Now, based on these facts, the company would offer what is termed as a non-recourse loan. This means that the company purchases a part of the claimant?s future settlement in advance. If the claimant wins the case, he would have to pay a percentage of the settlement amount to the company. If the claimant loses the company also loses, which means it gets nothing.

There is a high risk involved in this settlement. It naturally follows that the amount of fees charged by these companies is also very high. Yet, litigation can take a very long time because sometimes the cases drag on for many years. The claimant needs to have enough money to see him through till he gets the settlement amount. There may be also be situations when the injured person is unable to work or has reduced income. There fore, taking such loans can seem to be the ideal answer.

All said, it is very important to keep in mind that these loans can prove to be very expensive and a person should first explore all possibilities before settling for this option.

Lawsuit Funding provides detailed information about lawsuit funding, lawsuit cash advances, lawsuit funding companies, lawsuit loan services and more. Lawsuit Funding is the sister site of Litigation Financing Companies.

Sometimes there comes a situation when you find yourself a plaintiff in a personal injury case. This may because you might have faced discrimination at the workplace, or fired from a job for an unjust reason. Other reasons can include your having to face the consequences of a medical malpractice or even injuries because of an automobile accident.

To compound this problem, you do not have the necessary finances to take your case to court and even if you do manage to find the services of a lawyer, you may not have sufficient funds to enable him to prepare a watertight case. With no solution in sight, you agree to an out-of-court settlement, which would mean accepting for compensation a lesser amount than what you would have got had you taken the case to its natural conclusion in a court of law. To solve this problem, you can seek Lawsuit Loan Services to bail you out of the difficult situation.

There are a handful of Lawsuit Loan Service companies who advance you the cash to fight your legal battles. Simply stated, they purchase a part of the settlement that you would get as a result of a court verdict. You can approach these companies with your case. They in turn will consider the facts, consult a lawyer to seek legal opinions to judge the merit of the case and the amount of compensation that can be expected. Based on this they extend their services, which include advancing you the amount to take legal action, and the amount to meet personal expenses while awaiting settlement. This can also include funds required for medical treatment, in case of an accident. Also, the funds can help the attorney to prepare a strong case in terms of finding witnesses and collecting depositions. Lawsuit LoansA Lawsuit Loan, or pre-settlement funding, is the ideal option for people involved in personal injury suits who do not have the necessary finances to take their cases to court. It is not a loan in the traditional sense of the word, because the injured person has to pay back the amount only if he or she wins the case and gets a settlement verdict.

Typically, personal injury cases may involve any of the following: discrimination, malpractice (either medical or legal), injury due to accidents, etc. A person under these conditions may not have the necessary funds to fight the case for compensation. Lawsuit Loans come to the rescue of all such people. Also, the Lawsuit Loan does not require credit checks, monthly payments, notes, or any other security.

The injured person can contact any of the lawsuit funding companies for loans. The loans offered by these companies are non-recourse loans. . This means that the person does not have to pay back anything if he loses the case. Given the high risk involved, the financing companies charge a significantly high fee for the services provided. Usually, they charge about 10 to 15% of the settlement amount. Before issuing a loan, they would contact a lawyer to ensure the merit of the case and the amount of settlement expected. Based on the feedback, the companies offer the loans.

The fee for the loans can be a flat fee or a recurring fee. You can obtain loans from banks also. But it has generally been observed that banks do not prefer to sanction such loans, as they do not have the necessary skills to judge the merit of the case.

Also, you must keep in mind that the rules of ethics of the Bar Association prohibit a person from taking a loan from his attorney or lawyer. This is because a conflict of interest may result, and the injured person might be pressed into accepting a settlement that is less than what he could otherwise accept.

Lawsuit Funding provides detailed information about lawsuit funding, lawsuit cash advances, lawsuit funding companies, lawsuit loan services and more. Lawsuit Funding is the sister site of Litigation Financing Companies.

The concept of Lawsuit Settlement Funding proves extremely beneficial to people who do not have the requisite funds to fight their personal injury lawsuit cases. Consider a situation when you find at the receiving end of racial discrimination at the workplace, or have been unceremoniously thrown out of a job, and you don?t have the finances to go to court to fight for your rights. It is here that pre-lawsuit funding companies enter into the picture. They provide the required funds to the injured person, who then has to pay a certain percentage to the funding company on winning the case. It is important to point out that this funding is non-recourse funding. This means that you don?t have to pay anything if you lose the case.

Given the amount of risk involved, the fees are significant. The process works in the following manner. The injured person contacts a Lawsuit Settlement Funding company to discuss the details of the case. The company then contacts the injured person?s lawyer and finds out more details of the case, and the amount that can be expected from a successful suit. Based on this information and estimate, the financing company then offers an advance amount to the injured person. The injured person then has to the choice to pay either a flat fee, or monthly installment of the fees till the loan is outstanding. When the case is settled in court and the defendant pays up the money, the injured person can pay the associated fees and also the loan, which the financing company had advanced.

These loans are the non-recourse type, meaning that the injured person does not have to pay anything if the case is lost. Also, in case of winning, if the settlement amount is less than the amount anticipated, the amount to be paid by would never exceed the amount that the injured person got as settlement.

Lawsuit Funding provides detailed information about lawsuit funding, lawsuit cash advances, lawsuit funding companies, lawsuit loan services and more. Lawsuit Funding is the sister site of Litigation Financing Companies.

Lawsuit cash advances can be confusing especially for someone who was recently introduced to the concept. What is a lawsuit cash advance? Do I need lawsuit cash advance? How do I get funding for my lawsuit? When I am approved for lawsuit cash advance, do I have to pay back the money? If I am denied funding does it mean that I do not have a good case? These are all very good questions and the following text will answer these questions and more.

What is lawsuit cash advance?
A lawsuit cash advance is not a loan at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Lawsuit cash advance companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan. A lawsuit cash advance is not based on a plaintiffs prior credit or bankruptcy status. Other terms used for this type of funding include: lawsuit loan, litigation finance, litigation loan, lawsuit funding, lawsuit finance, litigation cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need lawsuit cash advance?
Lawsuit cash advances should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you. Too many plaintiffs apply for a lawsuit cash advance with the belief that a lawsuit cash advance is simply a different way to get their settlement money. Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first. Also, a good guideline to use is that lawsuit cash advance companies generally advance up to 10% of the estimated settlement amount. There are some good internet sites that give more background on lawsuit cash advances. Some good sources of information are The Funding Exchange (www.TheFundingExchange.com) and Expert Law (www.expertlaw.com).

How do I get funding for my lawsuit?
Lawsuit lending companies have popped-up all over the country. Some tout their low interest rates or how they are the most lenient when it comes to approving lawsuit loans. For every 1 respected lawsuit lending company there are 3 that will do anything to charge plaintiffs random penalties that make no sense. These penalties help to offset their low interest rates and many times end-up costing the plaintiff more of their settlement. A good option is The Funding Exchange (www.TheFundingExchange.com). The Funding Exchange is a network of the most respected lawsuit lending companies in the industry. You complete one application on The Funding Exchange and your application is intelligently routed to the best lending companies for your specific situation.

If I get a lawsuit cash advance, do I have to pay back the money?
Almost all lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then you can keep the cash advance with no obligation. If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees. The amount owed to a litigation finance company increases the longer that your case takes to settle so keep that in mind.

If I am denied funding does it mean that I do not have a good case?
The simple answer is no. Being denied for a lawsuit cash advance does not mean that your case is not a good case or that you will actually win less money than you think. There are many different reasons why funding is denied. One reason is that the estimated settlement date is too soon. Litigation finance companies make money by accruing interest on their investment in your case. If your case is supposed to settle in 2 months then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request. Other reasons for denying lawsuit loan applications include: attorney will not provide documentation, attorney will not sign contract, plaintiff demands too much money, etc.

Conclusion
As a plaintiff, you should understand lawsuit cash advances and the process of securing a lawsuit cash advance before you apply. If your expectations are set correctly and you proceed with a lawsuit cash advance then you will find that it is a saving grace in the turbulent world of litigation. If you apply for a lawsuit cash advance without an understanding of litigation finance then you may be disappointed.

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Evaluating personal injury claims is a tricky business. In the past six years my firm, CapTran, has underwritten 10,000 requests for pre-settlement advances by plaintiffs. We have never had anyone tell us that their case was not a slam dunk or that they were not going to get a substantial settlement. We are always told the insurance company is going to settle quickly because their case and/or attorney are so good.

Our experience tells us baloney!

Unrealistic expectations in personal injury law are a recipe for certain disappointment. Rarely do even slam-dunk cases get settled quickly for large amounts. Quite the opposite, slam-dunk cases usually involve serious injuries that require a long time to treat. Settlements are rarely reached prior to the victim achieving maximum medical improvement.

Hubris aside, everyone wants to know the real value of their case. Unfortunately, accident victims are often beset with self-appointed experts replete with stories and anecdotal evidence of huge jury awards. They know someone who knows someone who got a huge settlement for a back strain or whiplash. These influences do nothing but confuse the issue and most of the time has nothing to do with reality.

The truth is that, with the exception of the horrific paralyzing or disfiguring injury, most accident damage awards fall within a very predictable range. The National Transportation Safety Board reports that 3 million people are injured in motor vehicle accidents each year and insurance companies pay out nearly $20 Billion in bodily injury claims annually. The Insurance Research Council conducts a survey of auto claims every five years. The surveys participants account for about two out of every three claims paid in the United States. In short, there is an enormous amount of data available to insurance companies regarding every conceivable type of injury and the amount paid to settle the claim.

Facts to consider

1.The average amount paid for a bodily injury claim is less than $10,000.

2.The amount paid varies widely by state.

3.Insurance companies are very wary of chiropractic treatment, especially if it is the only treatment.

4.Insurance companies are very wary of excessive physical therapy treatment.

If your attorney is experienced in personal injury cases he or she will know the range of values and the claiming behavior of insurance adjusters in your area. Our experience is that attorneys are prone to overestimate the value of your case rather than underestimate it. We urge you to listen to your attorneys advice regarding claim value because it is unlikely that they will overestimate its worth. If you attorney is not experienced in PI cases well, get another attorney.

That having been said, we offer the following thoughts that come from our experience. We have limited our comments to the most common type of case – motor vehicle accidents.

Factors to Consider

There are a great many factors that impact on the potential value of you claim. In order to determine whether (and how much) to invest in your case, CapTran uses these factors or case attributes, to calculate the value of a case. In general we look at the following case attributes:

1.The event

2.Liability

3.Ability to pay

4.Damages

5.Quality of the Defendant

6.Quality of the Plaintiff you!

1.The Event

What actually happened? Not what you think happened, or even what you know happened but rather, what can be verified or proven.

If the police did not arrive at the scene it will be more difficult for you to prove anything.

If you received a ticket you will have a difficult time collecting full value for your case (in contributory negligence states you may collect nothing!)

If the defendant received a ticket, his or her insurance carrier is more likely to readily admit liability.

If the accident happened in a manner that is unquestionably not your fault and/or demonstrates recklessness on the part of the defendant, the insurance carrier is more likely to attempt to settle.

Where there witnesses unrelated to you and not in your vehicle present? If so, defendants insurance carrier is more likely to readily admit liability.

Did the other driver admit liability at the scene? If so, defendants insurance carrier is more likely to readily admit liability.

Did you take pictures of the car at the scene or later?

Was your vehicle moving or stopped? If lawfully stopped it is highly unlikely that you will be deemed to have contributed to the accident and the defendants insurance carrier is more likely to admit liability.

2.Liability

The certainty of liability or the availability of a defense will impact the level of enthusiasm the insurance carrier has to settle your case. If there appears to be a valid defense available, even if not perfect, the value of a settlement offer will suffer. If the injuries are minor, the only thing the insurance company has to lose is the expense of trying the case.

3.Ability to Pay

Regardless of your damages, someone has to have the ability to pay in order for you to collect. The availability of insurance or a financially strong defendant is critical to the ability to achieve financial redress for your injuries.

Amount of insurance coverage. Insurance policies have limits on the amount they will pay per accident victim as well as per accident. If you are one of several people injured in an accident you will have to share the coverage with the other claimants. For example, if a policy has a per accident cap of $100,000 and five people are injured each with a claim worth of $50,000 (for a total of $250,000) there will not be enough to cover all claims.

Self Insurance. Many large companies self-insure meaning that instead of paying premises to an insurance company, they set aside certain monies each year to establish an insurance reserve to handle future claims. Many times the company will actually have its own so-called captive insurance company.

4.Damages

Severity of impact. This is common sense. If your vehicle has a sustained little damage the insurance adjuster will know that a jury is likely to conclude that no one could have been seriously injured in such a fender bender. On the other hand, they will not want to go up against an attorney that can hold up a picture of your severely demolished vehicle telling the jury why, my client is lucky to be alive!

When you received treatment. If you went to the emergency in an ambulance that is better than if you went to the emergency room two days later (especially if you went to your attorney first).

Soft tissue injuries versus broken bones. Most minor accidents involve what used to be called whiplash but are now referred to as cervical strain or sprain. A broken bone is easy to prove and easy for juries to understand. With soft tissue injuries, it is difficult for juries to separate good claims from fraudulent ones. Insurance adjusters know that juries will not award large amounts for soft tissue injuries.

If you have a broken bone, especially if it is a weight-bearing bone, you have an injury that can be verified by indisputable evidence such as x-rays.

Amount of your medical bills. While meds are a very significant (often the most significant) factor in determining case value, there is no simple formula to use in determining case value. Forget the junk about 3 times meds or 3 times specials. Insurance Research Council survey data reveals that bodily injury claims cannot be estimated in such a simple fashion. Values vary widely from state to state and the type of meds is very important. Some rules of thumb are:

1.Treating expenses carry more weight with insurance adjusters than diagnostic expenses. It matters little that you decided to have an expensive MRI or CAT Scan.

2.Chiropractic expenses are severely discounted by insurance adjusters (and ignored by us).

3.Excessive visits to the physical therapist are not only discounted by adjusters but along with chiropractic bills also raise a red flag for what is called build-up.

Medical providers that treated you. Insurance adjusters look for treatment by medical specialists that indicate clear-cut injuries associated with vehicular impact. If you are only treated by the ER physician and perhaps your family doctor it will not carry as much weight as if you were treated by an Orthopedic Surgeon or a Neurologist.

Documentation of your injury. Failure to go for medical treatment, or large gaps of time between treatments, are red flags for insurance adjusters. Inadequate documentation will not pass muster with insurance adjusters.

5. Quality of the Defendant

Appearance matters in court. Every adjuster knows that a sympathetic defendant is less likely to suffer large verdicts. The inverse is, of course, true as well. The kind of evidence, especially prior acts that can be presented in court varies from state to state but defendants must be wary that adverse evidence regarding the plaintiff will see its way into the jury room.

6. Quality of Plaintiff YOU!

We have had several good cases lost because the jury simply didnt like the plaintiff. If you appear too strident or are overly aggressive, combatant or belligerent, a jury will find a way to punish you for your behavior.

If you have had several minor accidents a jury may conclude that you are a scam artist.

Above all else, try to be realistic in your evaluation of your claim. The object of the tort system is to compensate you for your damages not to unreasonably enrich you. Be sensible and reasonable and you will enhance your chances for a successful outcome. Good luck!

This article is intended for information only and should not be construed as legal advice. You should consult your own attorney for legal advice.

Copyright Capital Transaction Group Inc

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CapTran is a litigation financial services company that makes working capital loan to law firms as well as pre-settlement advances to plaintiff. Financially stressed plaintiffs come to us for financial help in order to be able to sustain themselves while waiting for their case to resolve. We are not a law firm and we offer no legal advice. However, we do have a great deal of experience investing in personal injury cases. The observations and comments in this article are a result of those experiences.

One of the most common questions we are asked is Why is my case taking so long? Many clients get angry as the time between the injury and the claim settlement gets longer and longer. Plaintiffs often vent their anger at their attorneys for the delay when, in most cases, it is not their fault. We constantly hear clients complain that their attorney is not doing anything or my attorney won’t tell me anything.

CapTran has invested in thousands of personal injury cases and has dealt with literally thousands of personal injury attorneys and their staffs. Our experience tells us that there are many reasons for the delay and in order to determine whether or not your case is going unusually slow it is important to understand how the claim process works.

First and foremost is the fact that insurance companies are in no hurry to settle. The longer they can hang on to the money, the more investment income they can earn. While many states have bad faith insurance laws that require insurance companies to handle claims in good faith, many continue to move as slowly as they think the law will allow. Certain insurance companies are especially slow to deal with and some have even been successfully sued under the bad faith insurance laws. Most cases settle without a lawsuit.

Notice we say claim process and not lawsuit. That is because year in and year out, most personal injury claims are settled without a lawsuit. For example, insurance industry survey data reveals that 95%-96% of all motor vehicle bodily injury claims are settled without a lawsuit ever being filed. Attorneys only file lawsuits as a last resort if the claim cannot be settled through negotiation with the tortfeasor’s (defendant’s) insurance carrier.

Should I hire an attorney or handle the claim myself? If what you just read about settlement data has you thinking that, if it is so easy to settle a case, maybe you should handle the claim yourself, think again. Study after study shows that claims paid to claimants without legal representation are lower than those with legal counsel.

The claims process

Your attorney will notify the defendant’s insurance company that counsel is representing you. The insurance company will assign an adjuster to work on your claim. This is the person with whom your attorney will negotiate to secure the best settlement possible.

There are two parts to the claims process – liability and damages.

LIABILITY

The first part of the claims process is establishing liability. If there is any question of liability the claims process will come to a screeching halt.

Plaintiffs always seem to feel that the question of liability is cut and dried since a police officer may have arrived at the scene and issued a traffic ticket to the defendant. However, it may not be that simple:

The defendant may have subsequently challenged the ticket and won.

The defendant may have a valid excuse such as an emergency situation that made the accident unavoidable. In many states, such ‘emergency actions are valid defenses.

The defendant may be a governmental entity with sovereign immunity meaning they can’t be sued.

You may be considered partly (not mostly) responsible and in some states such contributory negligence may prevent you from suing.

Your own history and conduct will have an impact on the insurance adjuster’s view of liability. Some of the things that will make an adjuster question liability are:

1. If you went to the emergency room and the medical report reveals drugs or alcohol present in your bloodstream. 2. If you have a prior criminal record.

3. Previous injuries. If you have had a previous injury the adjuster may question if the injury is really a result of the previous accident or condition rather than the current accident.

4. Subsequent injuries. If you have a subsequent injury resulting in another insurance claim, the adjuster will begin to wonder if you are a scam artist. At the very least, you will have two insurance companies claiming that your injuries were the result of the other driver’s negligence.

While we find that in most cases insurance carriers do not challenge liability without good reason, we cannot emphasize too strongly that only a qualified personal injury attorney can adequately represent you on liability questions.

DAMAGES

Generally, the most time consuming issue is the question of damages. Since your physical injuries are most likely the largest component of your claim value, your attorney must know the answers to the following questions:

1. What were your injuries?

2. What treatment did you receive?

3. What were your medical expenses?

4. Have you stopped being treated and have you reached what is called maximum medical improvement (MMI)? MMI means that additional treatment will not make you any better.

I t is important for you to understand that while you are still being treated your attorney can do very little if anything to move your case along. Why? Until your condition has been fully treated and you have reached MMI, your attorney has no way of determining how much to ask for!

To help speed your things along, make sure that you do the following:

Be diligent in your medical treatment.

Make sure that your attorney receives proper documentation from your medical providers.

Ask your attorney if there is anything further that you need to provide.

When you stop treating ask your attorney when a demand letter will be sent to the insurance company.

DEMAND LETTER

When your attorney is sure that you have reached MMI and that all facts pertinent to your claim are known, a demand letter will be sent to the insurance adjuster. The demand letter will contain a recitation of the facts of the accident, theory of liability and demand for payment for the damages you have suffered.

We have seen all kinds of demand letters. Some attorneys treat demand letters like simple business documents and others seem to see them as an art form offering the chance to wax poetically about the grievous nature of your injuries. Insurance adjusters see thousands of demand letters and are expert at plowing through the verbiage to get at the real issues. It is important to ask your attorney for a copy of the demand letter so that you can be sure that your claim is complete.

Be diligent and patient

Once you are satisfied that you have finished medical treatment (and are at MMI) and your attorney has submitted an accurate demand letter, you must be patient and diligent.

If there are no liability issues and your claim does not have the appearance of fraud or buildup, your claim will be processed by the insurance company’s adjuster. Time really starts now. All of the time up to this point means nothing. Be diligent in checking with your attorney to see if the insurance company has responded as well as to make sure that there are no issues that have arisen of which you should be ware.

If you have reached this point, be patient. Your attorney wants the same thing you do; to have the case settled to your satisfaction and get paid.

By Wayne C Walker, President of Capital Transaction Group Inc. a leader in litigation financial services www.captran.com.

This information is opinion and not intended to be legal advice. Readers should not act on this information without seeking the advice of a competent attorney. 2003 CapTran

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In the past six or seven years a new fast growing financial product for personal injury plaintiffs has emerged. Known by many names such as lawsuit funding, legal funding, litigation funding, pre-settlement funding, lawsuit advance, case funding and many other variations, this product offers financial help to plaintiffs waiting for a settlement, where there was none available before. Despite the high cost, the demand is strong for this hybrid product and the market has shown accelerating growth over the past couple of years.

Lawsuit Funding grew out of a hole in the financial system created by demand from the millions of people financially stressed because of injury by some sort of accidental tort and the lack of availability from traditional financial sources. Banks and other traditional financial institutions will not lend to someone whose primary collateral is an interest in their own lawsuit. Because they do not posses the skills to analyze the merits of personal injury lawsuits (or any other type of lawsuit for that matter) they will not lend regardless of the merits of the case.

A new breed of venture capitalists has filled the gap by providing these much needed funds in a unique manner. To avoid the usury limits, which would render the product economically infeasible, the typical lawsuit funding transaction is done in the form of an investment rather than a loan. This means that the funding company only gets paid if the lawsuit or claim is successfully resolved. If you lose your case you own them nothing! Generally speaking, this non-recourse element renders the transaction an investment (not a loan) under the law[1.

The nature of lawsuit funding makes the product high cost. Because of the non-recourse nature of the product, losses are high compared to other types of consumer products and the processing costs are also high because of the small average transaction size generally less than $5,000. Rates vary a tremendously from one funding company to another. While rate have dropped in the past couple of years, when all charges are included, they still average between 4% and 5% per month. However, it is not uncommon to find lawsuit funding companies still charging 15% a month. Caveat Emptor!

While there are many success stores there are just as many horror stories to be told about lawsuit funding transactions. Typically, the horror stories all come from the same companies those charging very high compounded rates. With a little bit of shopping around, it is possible to avoid these get rich quick artists and find a reputable company that will provide ample funds at simple interest rates. The cost will still be high due to the nature of the product; after all, if you lose your case the funding companys investment is wiped out.

Before making any commitments, plaintiffs would be well advised to show the proposed terms to their attorneys. Any reputable lawsuit funding company will be more than happy to provide your attorney with any information needed to make an informed decision.

[1 This is a complicated topic but, generally speaking, if repayment of any part of the principal or interest is contingent on an event that is more than a mere colorable hazard, the transaction is not considered a loan and not subject to usury laws.

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Lawsuit Loans. No Risk Loans

A relatively new source of financing is now available for both individuals and business owners. It is called lawsuit financing, often referred to as lawsuit loans or lawsuit funding. But these are not loans because the money does not have to be paid back unless the case is won.

Lawsuit financing (loans) help clients who are having financial difficulties. Lawsuit funders do not require credit checks, monthly payments, notes, or any other security.

Frequently, claimants have missed work or lost their job and can no longer meet their rent or automobile payments. In the past, these claimants have needed to accept lesser settlement amounts due to pressing financial difficulties. Now, clients can sustain their personal lives and give the attorney the necessary time to achieve the full value of the case.

Often times, individual claimants and commercial litigants require financial loan assistance prior to settlement or judgment. Types of cases that qualify are:

- Personal Injury: Automobile Accidents, Any Type

- Malpractice: Medical-Legal, Accounting, Construction,

- Wrongful Termination

- Discrimination

- Harassment: Sexual/Rape, Any Type

-And much more

There are a handful of companies that provide lawsuit funding. For more information on these lawsuit loan companies please visit http://www.fredcoutts.com/indexlawsuit.htm. Each company provides funding that is specific to their criteria. All lawsuit funding companies will provide funding for personal injury lawsuits. But there are only a couple that will fund commercial and other non- personal injury lawsuit cases.

Rates will vary depending upon the risk. Lawsuit funding companies will generally finance up to 10-15% of the potential settlement value. For example, if the case has a potential value of $100,000, you can expect a funding offer of $10,000 to $15,000. Lawsuit funding companies carefully analyze the cases they choose to fund. They must like the lawyer as well as the potential settlement value.

Lawsuit funding is available in most states and can be a very beneficial source of funds.

For more information please contact the author Fred Coutts at http://www.fredcoutts.com/indexlawsuit.htm or phone at 888-942-6639.

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