In legal funding, the funder buys a portion of your legal fee from settled cases. Often lawyers are concerned that the cases they handle won’t qualify especially if they have a unique practice. The reality is that virtually any type of contingency fee case can meet the requirements for funding. As long as the funder can underwrite the paying obligor; there is a written settlement agreement; and the legal fee arrangement is clearly spelled out between client and lawyer, funding is generally available. Some of the types of cases that typically meet those requirements include the following:
- Auto accidents
- Premises liability
- Product liability
- Medical malpractice
- Slip and fall cases
- Cruise line injury cases
- Infant actions
- Death actions
- Construction defect cases
- Mass torts
- Multi-district litigation
- Class actions
- Employment litigation
- Labor cases
- Workers compensation cases
- Some commercial cases
Attorneys handling other types of cases should contact a funder to discuss their situation. It is likely that it will still qualify as long as it meets the basic requirements discussed above.
Many of these case types involve large legal fees. However, there are a lot of lawyers who specialize in matters involving lesser types of injuries with smaller settlements and legal fees. Even such small matters can be funded. It is not unusual for an attorney to be waiting to receive settlements on multiple cases at the same time. Often this group of settled cases can be consolidated for purposes of providing cash to the law firm. This enables the firm to have access to significant capital to meet its financial needs.
Whether you specialize in class actions and settle a few large fee cases per year or you handle low severity but high volume matters that settle each month, legal funding can provide a solution. If you deal with a unique type of case, an experienced funder should be willing to talk with you about your options.
If you need funding to run your practice, learn more about how we can help.