Many people assume that litigation funding is used by
people involved in lawsuits, but actually, many firms also fund law firms
as well. Attorneys normally charge a flat or hourly fee for
their services, and often may pass on a meritous claim due
to a potential client’s inability to pay. By receiving payment in
advance or as they work from a litigation funding company, these
attorneys can cover their expenses and repay the litigation funding
company once the client's case is resolved. Often, the litigation
funding company is only repaid of the lawsuit is successful.
This model of litigation funding isn't uncommon at all.
Many high-profile class action suits have featured investments from an
outside source to enable the attorney to represent the client in question.
A prominent example where a law firm has borrowed money in order to litigate on
a client's behalf is in the case of the lawyers representing most of the
ground zero workers suing New York City over health issues, Worby Groner Edelman and Napoli Bern Ripka.
Other firms, like Amerevision Legal Finance, a niche commercial
funder based in New York that focuses on funding real estate related
matters, provide law firms with direct payment for work performed
when their client has a strong case but lacks the ability to cover the costs of
litigating. Other types of private funders may simply cover the attorney
retainers, relieving the burden of up-front payment but still leaving court
costs in the hands of the client. Still more advance money to a
litigating client to be used as they wish in anticipation of a settlement.
In summation, litigation funding is not necessarily a one size
fits all industry. Each case is unique, as is each client. Whether the client
is a Fortune 500 corporation, a self-starting entrepreneur, or a tenacious
lawyer, there are different litigation financing options available.
Labels: Amerevision, entrepreneurs, lawsuit funding, litigation finance, litigation funding, ripoff report, third party litigation
