Pending Lawsuit

Written by Patricia Tunstall
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Pending Lawsuit Funding

Pending lawsuit funding is provided by investment groups that are in the business of assessing medical malpractice, employment discrimination, wrongful death, and personal injury lawsuits. To these groups, litigation capital advances are a business decision based on their judgment that a particular claim has a good chance of winning in court. Based on this judgment, they proffer pending lawsuit funding to a financially-strapped plaintiff in order to allow the suit to continue.

By its very nature, however, such a decision to provide financial assistance is also rooted in the value judgment that it is good social policy to enable a deserving plaintiff with a good case to persist against a defendant with much greater resources. Such a defendant could be, for example, an insurance company or a corporation; these businesses have a stable of lawyers and seemingly unlimited funds to carry on their defense for years.

Wearing Down the Plaintiff

Wearing down a single plaintiff through various means is a common strategy among defendants in a pending lawsuit. Unfortunately, it is frequently quite easy to do, for few plaintiffs have adequate lawsuit money to continue for very long. Indeed, many injured persons cannot even file a lawsuit to begin with because the expenses are too great.

With the upsurge in third-party legal funding in the 1990s, the balance of power between plaintiff and defendant was altered. With the intervention of these groups, poor plaintiffs were able to pursue their worthy claims to conclusion, and, if successful, receive much-needed money from the defendants who were responsible for the harm. The "little guy" was now able to meet the wealthy defendants in court on a more equal basis.

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