Settlement Cash Advance

Written by Patricia Tunstall
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Settlement Cash Advance Relieves Crisis

A settlement cash advance is vitally important to a plaintiff whose lawsuit is in crisis. Faced with depletion of financial resources and possibly dealing with severe injuries, a plaintiff would have no choice but to drop the claim to avoid going into debt. With no prospects for income or for paying off such a debt, a desperate plaintiff would be emotionally distraught as well as financially ruined.

This is precisely the kind of situation a settlement cash advance is meant to resolve. Proffered by third-party groups as an investment, such lawsuit financing has been on the rise since the 1990s as business deals that have altruistic undertones. As such, they provide interim funding to allow plaintiff's lawsuit to proceed.

Welcome Relief

By infusing adequate funds into a doomed claim, outside investment groups enable an injured person to continue with a just claim against wealthy defendants who have the money to outlast the plaintiff. Attorneys know this is not an overly-dramatic picture of all-too-common circumstances. Insurance companies may refuse to pay a claim and refuse to operate in good faith. The injured plaintiff is then left without critical backup that was counted on.

In many home siding cases, which often became toxic mold cases as well, defective siding buckled, warped, and eventually allowed water to seep into houses. In many instances, insurance companies refused to pay and manufacturers refused to back their warranty. Even though nationwide class action lawsuits were filed, few plaintiffs ultimately received enough money in settlements to repair the extensive damage to their homes, which worsened every year. These claims were a classic case of the deep pockets of the insurance companies and corporations enabling them to prevail over plaintiffs. A settlement cash advance could have provided a boost to plaintiffs to create a more level playing field.

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