Pre-settlement funding is a great financial resource for individuals involved in legal disputes. It offers them financial assistance while they wait for their cases to be resolved. Not all legal claims are the same and pre-settlement funders carefully evaluate the types of cases they take on based on a number of different factors. The most important factors are things like complexity, merits and strength. Check out www.rockpointlegal.com for all things pre-settlement funding.
Personal injury cases
Personal injury cases are among the most common types that pre-settlement funders take on. These cases involve individuals who have suffered bodily injury or harm due to either the negligence or intentional actions of another party. Some examples include car accidents, medical malpractice cases, and product liability claims. These cases are attractive to pre-settlement funding companies as they generally have a clear defendant and liability. This makes it easier to assess the strength of the case which is an important factor for consideration in these types of cases.
Product liability claims
Product liability claims arise when a defective product causes harm of some kind to a consumer. These cases can involve anything from bad or faulty manufacturing to inadequate warnings about potential risks. These types of claims often involve significant damages, including medical expenses, lost wages, and pain and suffering, which means that the pre-settlement funding company stands to make a lot from funding a claim like this. A key factor that the funder will look at is the ability to prove the product’s defect and the manufacturer’s responsibility, these will help determine whether pre-settlement funding is viable.
Medical malpractice lawsuits
Medical malpractice cases involve claims of negligence by healthcare professionals, leading to harm or injury to patients. These cases are often complicated and may involve expert testimony or facts that make it difficult for pre-settlement funders to identify whether the case is strong.This may deter them from offering funding as these types of cases often require a more in-depth evaluation of the merits and potential outcomes.
Employment discrimination and wrongful termination cases
Employment cases related to discrimination and wrongful termination may also be considered by pre-settlement funders. These claims generally revolve around allegations of discrimination (age, gender, race etc) as well as wrongful termination. Pre-settlement funders assess the strength of these cases, considering the evidence of discrimination, employment contracts and labor laws. They also assess the potential amount of damages likely to be paid out before making a decision.
Class action lawsuits
Class action lawsuits are characterized by a group of individuals that have similar claims against a single defendant. These cases can cover a range of legal issues, including consumer protection and product liability. These kinds of lawsuits are attractive to pre-settlement funders as they could have access to a large number of plaintiffs and a significant amount of damages. Due to the non-recourse nature of this funding, the opposite is also true and funders must carefully evaluate the merits of the case and the likelihood of success before providing funding.
Commercial litigation
Pre-settlement funders may also consider commercial litigation cases where businesses are involved in legal disputes. However, this is only usually in the instance that the business is struggling financially. These cases can include contract disputes, and other issues affecting businesses. Funders will assess the merits of the commercial litigation, the potential damages, and the likelihood of success before deciding to provide funding.
Motor vehicle accident cases
Motor vehicle accident cases, including those involving cars, trucks, and motorcycles. These cases often involve a plaintiff and defendant that are easy to discern. These cases often involve personal injury claims, and funders will evaluate factors such as liability, the severity of injuries, and the potential for a favorable settlement or judgment.
The types of cases pre-settlement funders take on vary widely. While personal injury cases are often considered due to their straightforward liability, other complicated cases such as medical malpractice and class actions require a more indepth evaluation before a decision on funding can be made. Ultimately, pre-settlement funders aim to support individuals facing financial hardships during the litigation process, but the decision to provide funding hinges on the merits, potential damages, and unique characteristics of each case. This is why pre-settlement funding can also be provided to a business facing financial hardship.
