Legal financing is known by several names, but they all involve funding provided in the form of a law cash advance against the future proceeds of the case. This type of funding offers cash now in return for money in return, only when and IF the case is successful. Auto accidents are one of the most common types of lawsuits funded by legal finance companies.
The majority of the cases funded and considered by legal finance companies are personal injury cases. A few examples of personal injury cases are medical malpractice, slip and fall accidents, product liability, workers compensation, and auto accidents. Funding is common with auto accidents for many reasons.
One of the reasons auto accident cases are often approved and funded by legal finance companies is because the standards for liability are clear. This is because drivers are required to have a duty of care when driving and operating their cars, any violation or breach of this responsibility (duty) can result in a claim for negligence. Legal finance companies feel comfortable funding such cases due to the ease in proving this breach.
Liability is typically easy to determine by underwriters regarding automobile accidents. In most cases, the liable party is determined early on by police reports, photos taken of the accident scene and damaged vehicles. Legal finance funders also take into consideration other types of evidence including witness statements, depositions, etc.
In most areas of the country, there are established traffic and road laws so it’s easier to find proof of negligence. In fact, in most states there is a law that places the burden on drivers to maintain a safe distance from the vehicle in front of them. If there is a collision of the two vehicles and there was not a safe and legal distance maintained between the two cars, the liability is easily determined.
The same ease in determining liability is true of many other auto collisions.
Generally, damages and physical injuries in routine car accidents are far less complicated than many other kinds of lawsuits, which is why legal finance companies are willing to fund so many of these cases.
This is great news for plaintiffs involved in a personal injury lawsuit. For many plaintiffs funding is necessary as a law cash advance to help them keep pace with financial burdens. In addition, many plaintiffs involved in auto accidents have also sustained a physical injury which can require medical care over a period of time. Job loss or inability to work is also common, each can add to financial pressures. Legal finance companies provide funding designed to help plaintiffs when they need it most, and prevent them from settling a case too early, for a much lower amount.