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Litigation Funding Blog

Sisters Killed in Car Accident While Traveling for a Family Vacation

November 16, 2021

On June 20, 2021, two sisters died in a car accident while heading to Northern Michigan. The girls were traveling for a family vacation. The 22-year-old and 16-year-old sisters were in the same vehicle while their father drove in a separate car.

The car driven by the two sisters was struck by another car heading in the opposite direction. The woman in the other vehicle tried to avoid a crash and ran off the road and into oncoming traffic. 

Emergency responders pronounced the sisters dead at the accident scene. The driver that hit the sisters’ vehicle also went to the hospital for injuries sustained in the accident. The medical facility airlifted her to another hospital because she had life-threatening injuries.

When a loved one is the victim of a fatal car accident, the at-fault driver is liable for the collision and damages that arise. The surviving family members can bring a wrongful death lawsuit to seek compensation for financial losses, such as funeral and burial expenses and medical bills. They may also recover for noneconomic damages, including loss of companionship and emotional distress.

Throughout the case, litigation expenses arise and can be costly. Legal action can create a financial strain, and the family may need to find a way to cover the costs. Litigation funding is an ideal option to help pay the expenses.

Legal funding is a service in which a third-party financing company loans money to a borrower to pay for litigation or personal expenses throughout the lawsuit. Unlike traditional loans, borrowers do not have to repay the legal financing out of their own pockets. Repayment of the loan comes from the money the borrower receives from the lawsuit. Therefore, the third party that provides the funding only gets the loan returned if the borrower wins or settles the case.

Learn more about litigation funding by visiting https://www.litigationfundingcorp.com.

Jury Awards 6-Year-Old $40 Million for Birth Injuries that Left Her Paralyzed

October 19, 2021

On the evening of March 2, 2011, a 34-year-old woman arrived at the hospital over 34 weeks pregnant with twins. The hospital induced her labor. The next afternoon, the attending physician determined that the mother was ready to give birth.

During the delivery, one twin suffered a spinal injury that caused her paralysis from the mid-chest downward. She had damages to her spinal cord and several torn nerve roots. The injuries left her unable to stand on her own, and now she has to use a wheelchair. 

The little girl’s parents filed a lawsuit on her behalf in 2013 against the doctor, hospital and health system. The parents’ medical malpractice claim alleges that the mother was supposed to deliver via cesarean section and that one of the babies was in the feet-first position, which is highly risky for a vaginal delivery.

According to the suit, a loud popping sound occurred when delivering the baby’s head. The memo stated that the sound was the spinal cord breaking. Also, the torn root nerves resulted in damage to her right arm.

The lawsuit went to trial in January 2018. The jury ruled in favor of the parents and their daughter. They awarded the now six-year-old girl over $40 million for her injuries and damages, and $ 10 million is for pain and suffering.

The remaining $30 million is for her future care based on the determination that she will need physical and occupational therapy for the rest of her life. She will also need extensive hours of daily personal care, assistance with medical care visits, medication and the finances to cover the medical expenses.

When medical malpractice occurs, the parents may file a lawsuit on their child’s behalf against the doctor, hospital and any other negligent party.  

Medical care must continue while waiting for the conclusion of the case. The child’s parents may not be able to afford healthcare costs and a lawsuit. In such a situation, litigation funding may be the ideal option to cover the expenses.

Litigation finance or litigation funding occurs when a third-party lender provides money to the person bringing the lawsuit to fund the case. The borrower uses the money to cover the litigation costs, such as attorney’s fees and court costs. The financing from legal funding can also cover the plaintiff’s personal expenses. 

In return for the financing, the third-party lender receives a portion of the plaintiff’s award when they win or settle the lawsuit. If the case does not resolve in the borrower’s favor, the litigation financer does not recover its funding. The risk of repayment lies with the lender.

Eighteen-Year-Old Woman Dies After Suffering Cardiac Arrest and Brain Injury During Plastic Surgery

September 3, 2021

On August 1, 2019, an 18-year-old female went to a plastic surgery facility to get breast implants. During the procedure, the woman went into cardiac arrest. The facility rushed her to a hospital where doctors diagnosed her with a brain injury that resulted from a prolonged cardiac arrest. She was left incapacitated. In October 2019, she died from pneumonia.

The woman’s parents filed a wrongful death lawsuit against the plastic surgeon, the nurse anesthetist and the registered nurse. The lawsuit alleged the nurse anesthetist left the patient alone for 15 minutes after administering the anesthesia. A different nurse entered the room and found the young lady in cardiac arrest. The case claims that the victim went into cardiac arrest twice, and medical staff resuscitated her both times. For nearly six hours, the plastic surgeon allegedly told his team not to call 911. Eventually, the team called to have the teenager transported to a hospital.

Due to her cardiac arrest and resulting brain injury, the patient could not walk, talk or feed herself. She required medical and personal care 24 hours a day. The parents of the teen filed a lawsuit approximately two months after the injury; however, they changed the case to wrongful death when their daughter died. The parents reached a $2 million settlement with the doctor and nurse anesthetist – each is liable for $1 million.

In Michigan, a wrongful death lawsuit arises when a person dies from a negligent act or failure to act. The personal representative of the deceased’s estate brings the case on behalf of the persons designated by state law to receive compensation. The party must file the wrongful death lawsuit within three years from the date of the victim’s death or forever lose the right to bring the legal claim. As the plaintiff filing the lawsuit, the personal representative must pay court costs and other fees throughout the case. At the same time, are financial obligations outside of the suit, such as funeral and burial fees and the deceased’s outstanding bills. Litigation funding is an ideal option for financing during the lawsuit.  

Also known as legal financing, it is the service of borrowing money from a third-party financing company to cover expenses throughout the lawsuit. The funding company may directly pay the funds to the laws firm to cover attorney’s fees and other lawsuit expenses. The borrower may also receive the money to pay for personal expenses.

The borrower receives the money and agrees to repay the lender from the money won or settled in the lawsuit. The agreement places the risk of repayment on the third-party financier. If the borrower loses the case, the lender does not get the return of its money.

The process to apply is simple too. A quick application and submission of a few supporting documents by an attorney is all that is needed for a decision. Once approved, cash can be received in as few as 24 hours. Contact Litigation Funding Corporation online for more information and the link to apply or call 1.866.LIT.FUND

Failure to Diagnose by Two Physicians Results in Man’s Death

July 21, 2021

A 63-year-old man died as a result of a severe infection that two physicians failed to diagnose.

The man’s family chose to file a medical malpractice lawsuit, alleging medical negligence. The lawsuit resulted in a jury award of over $4 million.

Court documents showed the man was admitted to the hospital in severe pain. After getting blood tests, two doctors examined him, but neither of the doctors spoke to each other to compare findings and discuss diagnostic possibilities.

The doctors suspected pancreatitis; however, no tests were done to confirm. The patent ended up having sepsis. Thirty-six hours later, the man died. The case ultimately went to the Supreme Court, and the jury found both physicians and the hospital responsible for the man’s death.

Despite the short period of time the man was in the hospital, his family would have faced significant medical bills, including tests, examinations, the cost of the room and any medications. They would also face funeral and burial expenses.

The family may have been interested in applying for a lawsuit loan from a litigation funding company to help them deal with their financial strain. Pre-settlement funding is emergency fast cash allowing plaintiffs the security of having funds on hand to pay all of their necessary bills, including mortgage, school loans, rent and car payments.

Life does not come to a complete stop because you are involved in a lawsuit, and it certainly does not wait for the lawsuit to pay off. Litigation funding provides the cash needed right away to cover living expenses while your case is being prepared and fought. There are no upfront fees involved in applying for a lawsuit loan, and litigation funding is without risk. If you lose, you do not owe the company anything. 

Qualification for the loan is based solely on the strength of the case, and no payments need to be made before an award is given to the plaintiff.

To learn more, visit Litigation Funding Corporation online at https://www.litigationfundingcorp.com/.

Attorneys Seek Over $9 Million from Hospital and Staff Members in Lawsuit for the Wrongful Death of a Mother of Two

May 25, 2021

On March 15, 2017, Maria G. Handley arrived at the emergency room with a very high fever, increase heart rate, low blood pressure; symptoms that are clear signs of an infection. She had an x-ray taken of her chest. The image showed an indication of pneumonia in the upper lobe of her right lung. The hospital later discharged Handley and sent her home with an antibiotic. The evening following her release from the hospital, Maria collapsed in her bathroom at home. Her son’s father took her back to Physician Healthcare Network hospital, which diagnosed her with septic shock. The hospital then transported her by helicopter to Henry Ford Hospital on the afternoon of March 17, 2017. Unfortunately, Ms. Handley died the morning of March 16, 2017, from pneumonia complications.

Attorneys for the estate of Maria G. Handley filed a lawsuit in St. Clair County Circuit Court against the Physician Healthcare Network hospital, the treating doctor, and a physician assistant. The complaint alleges that the negligence of the hospital and its staff contributed to Maria’s death. Her attorney alleges negligence in the failure of performing a complete blood count to determine the degree of Handley’s infection and which bacteria caused it. The lawsuit also alleges the failure to review the patient’s medical history that showed a recent pneumonia diagnosis and compromised immune system from a 2006 removal of her spleen. The attorneys sued for $812,500, the medical malpractice limit in Michigan, and more than nine million dollars for economic damages.

When a person dies due to a wrongful act, neglect, or fault of another person, the personal representative of the deceased victim’s estate may file a wrongful death lawsuit to recover damages. They may seek economic damages such as medical bills, lost wages, loss of future earnings, and burial costs. The case may also ask for noneconomic damages including, pain and suffering, mental anguish, loss of consortium, and loss of companionship. However, a party may hesitate to file the wrongful death lawsuit because the costs and fees associated with legal cases are too high. Litigation funding can help the person pursue the legal claim by removing the financial barriers and burdens.

Litigation funding is third-party financing to cover the legal costs and fees of a person’s lawsuit. The money is a conditional loan that helps pay for the attorneys’ fees, courts, and sometimes personal expenses during the case. Although the borrower uses the money to obtain legal representation, the attorney does not work for the legal funding company. The lawyer has an attorney-client relationship only with the borrower. The lender does not control the case or the legal services. If the client wins or settles the lawsuit, the third-party financer gets the loaned money back out of the judgment or settlement. Regardless of the case’s outcome, the borrower does not carry the risk of repaying the loan out-of-pocket.

Children of Army Veteran Who Froze to Death to Receive Settlement from the Federal Government in Wrongful Death Lawsuit

April 23, 2021

In December 2018, William S. Middleton Memorial Veterans Hospital in Madison, Wisconsin, discharged Army Veteran Vance Perry. On New Year’s Eve, a day after he left the hospital, Perry froze to death in a parking garage. The temperature the night before was six degrees below zero, and the veteran was only wearing a light jacket, baseball cap, and no gloves. The police found that he had no signs of trauma.

In a wrongful death lawsuit filed by Vance Perry’s family, the attorneys alleged fault and liability on the hospital for failing to make sure Mr. Perry got in the cab called for him. His five adult children claim the hospital knew that their father had a mental condition that put him at risk to wander. The hospital stated it did not realize Perry had not gotten home until someone from his residence contacted them. Furthermore, the lawsuit alleges that the hospital took no additional steps to alert the police or the public he was missing or possibly in danger.

A victim’s family filed a wrongful death lawsuit against the federal government. The United States agreed to settle the case for one million dollars paid to the Army veteran’s children. The settlement agreement does not admit fault or liability by the federal government. The will go to Perry’s children.

A victim’s family is likely to bring a wrongful death lawsuit in Michigan when their loved one’s death results from another person’s wrongful act, neglect, or fault. The personal representative of the deceased’s estate files the lawsuit to seek compensation for persons entitled to receive damages. However, the costs of court and attorney fees can hinder or prevent a person from pursuing the legal suit. If the person decides to file the court action, funding may be necessary to pay for litigation and personal expenses during the case. A great way to help cover financial obligations while waiting for a settlement or judgment is to choose litigation funding.

Legal funding is financing provided by a third party person or business unrelated to the litigation. Plaintiff receives the cash loan from the third party for expenses such as attorney’s fees, court costs, and personal expenses. In exchange for the funding, the plaintiff agrees to repay the loan from the money won or settled in the third-party funded lawsuit.

The benefit of pre-settlement financing is that the plaintiff does not repay the litigation funding out-of-pocket. The third-party financier does not get its money back if the plaintiff does not win or settle the case. The risk of repayment remains with the third-party investor. Therefore lawsuit funding helps to minimize the plaintiff’s financial burdens throughout the litigation process.

Former Owner of a Medicaid Firm Who Stole Nursing Home Residents’ Medicaid Applications Money Ordered to Pay $1.6 Million Judgment

March 23, 2021

Medicaid is a medical assistance program jointly run and funded by states’ and the federal governments. It provides health coverage to designated groups of people based on the eligibilities set forth in the programs. More than 70 million Americans receive Medicaid coverage. The participants include:

  • Low-income adults
  • Children
  • People with disabilities
  • Pregnant woman
  • Elderly people

To be eligible for Medicaid, applicants must meet such requirements as age and income. Individuals who ae children, aged, blind, or disable are automatically eligible for Medicaid. States may expand the provisions and programs provided by federal Medicaid. Under Michigan’s MI Choice program, persons aged 65 and older receive waivers for home and community-based health care services. The program is for individuals who would have needed nursing home care to get the same services in their homes and communities. The healthcare includes vision, dental, medical, and mental health services.

For some elderly people, Medicaid may be their only affordable option for health care treatment and maintenance. The application and approval process may be unknown or difficult to navigate on their own; therefore, elderly persons may rely on businesses that purport to provide services to guide them in obtaining Medicaid. However, as vulnerable members of society, the elderly may fall prey to fraudulent and unscrupulous businesses.

Nissim Aryeh, owner of Advanta Medicaid Specialists, allegedly stole hundreds of thousands of dollars from nursing home residents and their families. The former Medicaid firm, which was located in Lakewood New Jersey, stole the money from individuals who were seeking help with Medicaid applications. The customer paid between $3,000 to $9,000 for the services. When the families reported that they had not receive the promised services nor refunds if the applications were not approved, the state launched an investigation into the firm and the allegations. The investigators said Advanta took over $300,000 from its customers.

In December 2019, a civil lawsuit was filed against Aryeh and his company’s agent Chaim Feller. The charge for the owner and agent was transferring company funds into their personal accounts to spend on their personal expenses. The court found them liable for 131 violations of New Jersey’s consumer protection laws and regulations and ordered them to pay $1.3 million. The judgment amount includes consumer restitution, civil penalties, attorneys’ fees, and investigative costs.

Nursing home mistreatment may occur in the form of abuse, neglect, or exploitation. In Michigan, over 70,000 adults are victims of elder abuse. State and federal laws are in place to prevent elder exploitation. Civil remedies and criminal penalties are available to individuals and entities that financially, mentally, or emotionally abuse the elderly. Victims of elder exploitation may file a lawsuit for recover the damages they suffered such as, loss of money, emotional distress, humiliation, and loss of property. Some people who are 65 years old and older may be on fixed or low incomes. They may not have the additional funds to file a lawsuit. Lawsuits sometimes take years to settle resolve. throughout the lawsuit costs and fees arise and accrue. Legal financing can help to lighten the financial weight of a lawsuit.

Legal financing or legal funding is a conditional loan provided by a third-party financing company to help a litigant fund his lawsuit. When the plaintiff borrows the money from the lender, the loan is paid back to the third-party funder if the plaintiff wins or settles the lawsuit. The risk of repayment remains with the lender. The terms of the loan may also list the percentage of the plaintiff’s award that goes to the lender as repayment or in addition to repayment of the loan.

Additionally the third-party financer funds the lawsuit but does not control it. Even if the litigation funding pays for the attorney’s fees, the attorney works for the borrower. Therefore, the attorney must maintain attorney-client privilege and cannot provide privileged information to the lender without the client’s permission

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Son and estate of police detective killed in a motor vehicle accident receives a $14 million settlement

February 26, 2021

On December 24, 2018, Louisville Metro Police Detective Deidre Mengedoht was killed in a car accident after a semi-truck crashed into her police vehicle. The officer was conducting a traffic stop when the crash occurred. The semi-truck also injured people in the pickup truck that was pulled over. 

Roger Burdette, the truck driver, was a Metropolitan Sewer District (MSD) employee. At the time of the accident, he was in the course of his employment. MSD fired Burdette after the crash. 

Burdette was criminally charged with murder, four counts of wanton endangerment, driving under the influence of drugs or alcohol, and failing to give the right of way to a stopped emergency vehicle. Toxicology reports showed that the semi-truck driver had hydrocodone in his system at the time of the accident.

Two legal claims were filed. One lawsuit was submitted on behalf of the officer’s estate. The other lawsuit was brought on behalf of the detective’s son. The suits were filed against the semi-truck driver and his employer, Burdette and MSD, respectively. 

Burdette was accused of negligence and MSD of failure to employ, supervise and train Burdette properly.

The case went to mediation, and the parties settled for $13.65 million. The estate was awarded $10 million. The detective’s son, who was nine years old at the time of the crash, was awarded $3.65 million.  

The four individuals in the pickup truck also filed a separate lawsuit for their injuries and emotional trauma.

Wrongful death lawsuits arise when a person dies due to another person’s wrongful act or negligent act. In Michigan, a personal representative brings the lawsuit in the name of the estate of the person who died from the accident. The lawsuit can seek to recover compensation for economic and non-economic damages.

Non-economic losses include pain and suffering, emotional distress, and loss of consortium. The economic losses include medical expenses and care, burial costs, and loss of future earnings.

Wrongful death lawsuits cost money to begin the litigation. As the lawsuit progresses, additional fees and costs arise. Additionally, lawsuits are time-consuming and complex; therefore, it is best to hire an attorney to handle the case. However, attorney’s fees and costs can also add to the financial weight of litigation. Although a lawsuit may be costly, a person should not forego legal action when their legal injury caused them to suffer financial and emotional damages. Litigation funding may be the solution to the financial hurdle of a lawsuit.

Legal funding provides monetary assistance to a third party to pay for a lawsuit’s fees and costs. The financing helps a plaintiff hire legal representation based on skill and experience without settling for an attorney based on the costs. Although the third-party financing company pays the money for the litigation, it does not control the lawsuit. The client still decides the direction of the case. 

Also, the attorney does not work for the financer; they work for the client. Because of attorney-client privilege, communications remain private, and the legal funding company does not have the right privileged information.

“Another benefit of litigation financing is that the client does not pay back the loan out-of-pocket. The loan company only gets money back if the borrower wins or settles the case,” says Daren Monroe. The loan’s risk rests with the funding company, which provides financial relief to the plaintiff.

To learn more, visit https://www.litigationfundingcorp.com/.

Parents of Man Hit and Killed by Bus Awarded Jury Verdict of $20 Million

February 2, 2021

On June 29, 2017, 25-year-old Hunter Brown was traveling on a Greyhound Bus Lines bus from Seattle, Washington to California. During the ride, the bus driver stopped at a rest stop in Center Point, Oregon. While attempting to get back on the bus, Brown was run over by the bus and killed.

Brown’s parents filed a lawsuit against Greyhound Bus Lines. The lawsuit alleged the driver failed to count his passengers before leaving the rest stop. As a result, he left Brown behind. Passengers stated that when Brown fell, he was running alongside the bus and knocking on the bus door. After falling, the driver made a turn and roller over Brown. During the trial, a bus industry expert testified that the accident and resulting death could have been prevented if the driver took a headcount of the passengers.

The jury found Greyhound Bus Lines negligent in Brown’s death. The verdict in favor of his parents was $20 million in damages. The jury verdict stated that had the driver followed company policies, the accident may have been avoided. 

Wrongful death occurs when a person dies due to the wrongful act, neglect or fault of another party. A lawsuit for the injuries and resulting death can be filed on behalf of the deceased person’s estate. Michigan law also lists the persons that may be entitled to damages from the wrongful act and death. The individuals include the deceased’s spouse, children, parents and siblings. The lawsuit may seek damages for economic and noneconomic losses.

Economic losses include losses with a set monetary amount. They include medical expenses, medical care, lost wages and burial costs. Noneconomic losses suffered in a wrongful death action do not have set numerical values. Noneconomic losses include pain and suffering, mental anguish, mental distress, loss of companionship, loss of consortium, and loss of parental care.

Although a person may have a wrongful death action, they may not be able to pay for a lawsuit. The costs of starting a lawsuit accrue quickly. Even if a person decides to file the lawsuit without an attorney, they will still have to pay the court fees and other costs. Litigation funding provides financial ease.

Litigation funding or legal funding provides third-party financing to a person or party who pays for litigation costs. This funding allows the borrower to have some financial relief. The third-party financing company absorbs the risk of lending the money because the money is returned if the borrower wins or settles the lawsuit. Additionally, the borrower always retains control of their suit. The lender is only the financer; it does not control the case or the attorney. 

Hospital Settles Medical Malpractice Lawsuits for $3.7 Million

January 5, 2021

Hospitals have an influx of people entering, exiting, and checking-in every day. People go to the hospital for different reasons. Emergency rooms see patients with medical emergencies, minor pains and injuries, and when doctors’ offices are closed. Hospitals also contain primary doctors and specialists who see patients as a part of their scheduled doctor visits. Other departments within the hospital include the intensive care unit (ICU), labor and delivery, and the surgical department. Whatever the reason may be that causes a person to go to the hospital, he or she entrusts their health and health care to the trained medical professionals to provide adequate and appropriate care and treatment. When a medical professional fails to meet the legal standard of care, it is medical malpractice.

Three incidents occurring in 2015 and 2017 claim that University of Iowa Hospitals (UIHC) and Clinics (UIHC) and its employees were negligent in the care or treatment of patients. In February 2015, Robert Davis underwent spinal fusion back surgery. He was left with a significant neurological injury, which cause him to become a paraplegic. Also in 2015, Ardeth Wray was diagnosed with a non-cancerous tumor in her brain. The doctor who diagnosed her recommended surgical removal. Wray developed an infection, which required additional surgeries, an ICU stay, and time in skilled care recovery. She suffered a stroke during one of her additional surgeries. In the aftermath, Wray suffered from significant memory loss, vision loss, limited ability to speak, and struggles with most cognitive functions.

The third incident involved the death of Sharon Wiese. On November 12, 2017, Wiese was admitted to UIHC. The staff examined her esophagus, stomach, and small intestine. They placed feeding tube; however, the tube was placed in her esophagus instead of properly placed in her stomach. The hospital gave her feedings while the tube was in the improper location, which caused aspiration pneumonia in her lungs. She ultimately died from the pneumonia.

The family members of the three patients filed lawsuits against UIHC for medical malpractice. Robert Davis and his wife alleged in their lawsuit that the hospital was negligent in performing the spinal fusion and caused his significant neurological injury. He also claimed that facility failed to get his informed consent to perform the back surgery and that the physicians were improper in diagnosing and treating the conditions that arose the back surgery.

Ardeth Wray’s daughters filed a lawsuit on behalf of their mother. They asserted that the doctor recommended surgical removal of a non-cancerous brain tumor even though factors showed there may have been better options. However, the hospital disagreed with this assertion and stated that Wray was given the option of surgery or observation, and she chose surgery after knowing the risk involved. Her daughters also accused the doctor of failing to treat a preoperative bacteria with antibiotics before surgery to reduce the risk of infection during the surgery. They alleged that this failure to treat the bacteria led to Wray developing an infection that has left her with severe disabilities. Her daughters are now her caretakers because she is unable to live independently.

The husband and adult children of Sharon Wiese filed a lawsuit against UIHC after she died from aspiration pneumonia caused by improper placement of a feeding tube. After the staff inserted the feeding tube, they did not perform a x-ray to confirm that the tub was in the correct location. When the hospital restarted her feedings, the contents were going into her lungs instead of her stomach. The lawsuit claims that the hospital and staff breach their standards of care, which led to Sharon’s death.

UIHC agreed to settle the three lawsuits. The hospital agreed to pay the three families a total of $3.7 million for the medical malpractice lawsuits. Out of the total amount, Robert Davis’ lawsuit settled for $1 million. The daughters of Ardeth Wray received $700,000. The remainder of the settlement went to the husband and adult children of Sharon Wiese in the amount of $2 million.

Medical malpractice occurs when a medical or healthcare professional performs an negligent act, wrongful act, or fails to act when they have duty to do so. As a result of the malpractice, the patient suffers an injury. Out of the injury and act, the patient may have damages in which he is entitled to seek compensation. The damages may be economic, such as medical expenses, rehabilitation, and lost wages. Other damages may be noneconomic losses including, emotional distress, loss of enjoyment of life, loss of companionship, mental anguish, and disfigurement.

To seek recovery for the damages arising from medical malpractice, the harmed patient or deceased patient’s family member may file a medical malpractice or wrongful death lawsuit against the medical institutions and the staff involved. Although a party may have a valid lawsuit for medical malpractice damages, he may not have the financial ability to start and continue through the legal process. Rather than forego the lawsuit, the party wanting to file a lawsuit may seek funding for the case.

Litigation funding or a lawsuit loan is financing by a third-party to pay for the costs associated with a lawsuit. Court costs, attorney’s fees, and other expenses are involved in the litigation process. The legal financing allows the plaintiff to seek legal representation based an attorney’s or law firm’s experience and knowledge rather than solely on the cost. The legal funding allow the attorney to handle the lawsuit without worrying if she will be paid. The benefit for the borrower of a litigation loan is that he only repays the loan if the case settles or wins at trial. The third-party financing company assumes the risk that it may not get its money back from the borrower. Although the financing company pays the cost of the lawsuit, it does not have control over the case. It is also not privy to the communication between the attorney and the client.

Litigation Funding