The law provides a potential remedy for plaintiffs who are hurt due to the negligence or recklessness of others. Specifically, state and federal laws allow plaintiffs to sue defendants to recover the damages that they incur as a result of the defendant’s legal negligence. While the effects of the personal injury can never be fully negated, damages are intended to put the plaintiff in the position he was prior to the accident, to the greatest extent possible. So, for example, damages may include compensation for medical bills, lost wages and pain and suffering.
However, many times plaintiffs must engage in costly litigation in order to recover those damages. A plaintiff who has costly medical bills and lost wages may not be in a position to cover the costs of litigation even if the potential damages are important to the plaintiff’s future and the litigation costs are recoverable from the defendant. Accordingly, litigation funding is important to both plaintiffs and to the justice system.
Litigation Funding May Allow for a Fair Conclusion to a Legal Dispute
The financial pressure associated with recovery from a personal injury is often an important factor in determining whether a plaintiff accepts a settlement offer from an insurance company or defendant. Often, insurance companies and defense attorneys are aware of the plaintiff’s mounting bills and obligations and offer settlements that are significantly lower than what a plaintiff is likely to recover at trial. They reason that plaintiffs need the money quickly to pay their lawyers, their doctors and in some cases to keep their health insurance or their homes and that plaintiffs will therefore take the early settlement even if it is for less money than they are entitled to recover.
Litigation funding companies can remove much of the immediate financial pressure for plaintiffs. The money that is obtained from litigation funding companies can be used to fund the litigation itself or to pay any of the plaintiff’s bills. Without the immediate financial pressures, many plaintiffs may be willing to wait for a better settlement offer or be willing to take the case to trial.
Litigation Funding May Provide the Plaintiff with Cash Quickly
Many litigation funding companies quickly provide cash to plaintiffs who are approved for their programs. The funds may be used for any purpose. Often, they are used to pay medical bills, rehabilitation services, household help and everyday expenses while the plaintiff is recovering from injuries. For many plaintiffs, litigation funding companies can provide funds months and even years earlier than the judicial system can award damages. That can significantly help a person’s recovery by reducing the stress associated with the mounting bills and expenses.
Litigation is lengthy, stressful and, costly. Litigation funding companies can help plaintiffs in their quest for justice by removing some of the financial barriers that often prevent them from pursuing their case until a fair settlement is offered or a jury renders its verdict.