Lawsuit Pre Settlement Financing

Written by Patricia Tunstall
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Lawsuit Pre Settlement Financing for Civil Litigation

Lawsuit pre settlement financing is available on a need basis for individuals who can no longer fund their civil lawsuits. Fortunately, in the last few years, legal funding groups have developed creative ways to bring third-party money into such cases so the plaintiff can continue the legal fight for compensation or damages. This lawsuit pre settlement financing is a growing phenomenon in the legal field, and, despite a setback now and then, seems to really be the hope of the future for poor plaintiffs.

This sale of an interest in a plaintiff's claim raises many issues that relate to long-standing common law rules against attorney loans to clients and against just such a sale to third parties. Because of the severe changes in the rule regarding the sale of plaintiff's claim--some states have done away with the prohibition--and the proliferation of companies that invest in such claims, this legal bailout has become entrenched across the nation. Market pressures and legal justice are pushing toward the solid establishment of this lawsuit pre settlement financing.

Settled Cases Need Not Apply

Interim funding is just that--funding between the filing of the case and the settlement or judgment. A claim that has been settled is a done deal, unless one side appeals. Should an appeal be filed by a defendant trying to overturn a favorable judgement for the plaintiff, legal funding groups would consider assisting this plaintiff.

A settled case is one in which an agreement has been reached between the parties, so there is no room for further negotiation or legal maneuvering. Financing groups are interested in ongoing claims that are in danger of being dropped simply because the plaintiff has no more financial resources to tap into. By infusing the case with needed funds, these groups intend to promote justice, which is costly.

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