Top Reasons To Consider Litigation Support Funding

Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects. 

As a lawyer, few things are worse than seeing a promising case peter out just because your client can’t afford to pay any longer. All too often, finances force clients to settle for less than what their case is worth. Want to help your clients win the fairest possible settlement? Consider litigation support funding.

Below, Rockpoint Legal Funding, a trusted litigation funding service, explains what law firms and plaintiffs need to know about this invaluable lifeline.

What Is Litigation Support Funding?

Litigation support funding provides law firms and litigants with a cash advance on the plaintiff’s potential settlement. Law firms can use the funding to keep the plaintiff’s case going until their attorney reaches a fair settlement.

In addition to serving as settlement leverage, litigation funding can be a lifesaver for plaintiffs. Your clients can use litigation funding to pay for medical bills, home care, bills, and any other necessities. Litigation funding companies, such as Rockpoint Legal Funding, do not place restrictions on what borrowers can do with the funds.

Litigation funding is also appealing because it’s non-recourse. This means that if you don’t win a client’s case, you don’t need to repay the funding. It significantly reduces risk for both your firm and your client.

Our Non-Recourse Funding Benefits Both Plaintiffs and Attorneys

Good attorneys know that no matter how strong a case is, there’s always an element of risk. Additionally, because the majority of personal injury lawyers work on contingency, they carry the burden of that risk. If the attorney loses their client’s case, the client doesn’t have to pay, and the lawyer winds up with nothing for all their effort and hard work.

Litigation support funding appeals to attorneys because the funder assumes the risk, not the law firm. This lowered level of risk means attorneys can afford to take on cases that they might not otherwise accept.

Litigation provides ample benefits to plaintiffs, too. Because they have funding to cover their expenses, they’re less likely to feel pressured to settle for less than their case is worth. Attorneys, in turn, have more time to fight for a higher settlement. It’s a win-win for both.

Why Litigation Support Funding?

Why choose our litigation finance solutions? Here’s what litigation expense management offers you.

Lawsuits Can Drag On for Months or Years

A cut-and-dry car accident case with clear liability can settle in a couple of months or less. Not so for more complex cases, some of which can drag on for six months to a year. Commercial lawsuits and multidistrict litigation can take even longer, sometimes two to five years.

Litigation is a battle of attrition, and the party that runs out of funding first is forced to fold. With litigation funding, that party doesn’t have to be you.

Lawsuits Are Expensive

Litigation is costly for both plaintiffs and their attorneys. Lawyers have to cover the cost of travel, depositions, court fees, and hiring professional witnesses to testify in the trial. Attorney’s fees can cost hundreds per hour, and even well-off clients can’t afford to pay that rate for long.

Litigation funding provides much-needed cash flow for all lawsuit-related costs.

Litigation Carries Risk

Neither plaintiffs nor their attorneys like dealing with risk, but it’s an inherent part of litigation. One never knows if the defense will call a star witness to the stand or what decisions the jury might make.

Litigation support funding minimizes risk for both law firms and their clients.

Parties Involved in Litigation Funding

The three main parties involved in litigation funding are plaintiffs, attorneys, and the funder.

A plaintiff may be either an individual or a business. Plaintiffs can use litigation support funding for legal costs, working capital, personal expenses, and anything else they need.

Attorneys represent clients in the litigation process. Litigation funding helps attorneys and law firms cover their professional fees.

The funder provides cash in exchange for a portion of the plaintiff’s settlement. Funders will work closely with attorneys throughout the funding process.

Who Qualifies for Litigation Funding?

Plaintiffs often come to us wondering whether they qualify for case cost financing. Factors in securing litigation funding include:

• The plaintiff must have a valid case type. We largely fund personal injury cases, such as auto accidents, medical malpractice, dog bites, slip-and-falls, etc. This is because courts often decide these cases in favor of the plaintiff.
• The plaintiff must be working with an attorney. We cannot provide funding to plaintiffs who have not retained a lawyer.
• A plaintiff’s credit history has no impact on whether they qualify for litigation support funding. We do not consider their ability to repay funding because we will take payment directly from their settlement.

Why Choose Rockpoint Legal Funding?

Here’s why you’ll love working with Rockpoint Legal Funding:

• We provide lightning-fast funding when you need it. Have a funding emergency? We can usually fund accounts in 24 hours or less.
• There’s absolutely no risk to your clients or your firm. If your case doesn’t win, you owe us nothing.
• Our litigation funding does not have minimum draws like other kinds of funding, such as loans, do. There are also no minimum required payments, and you only have to pay us back once you win your case.

Financial Relief for Plaintiffs From Rockpoint Legal Funding

If you need help understanding litigation funding or are ready to apply, reach out to Rockpoint Legal Funding today. Call (855) 591-2489 for your free litigation support funding case evaluation now.