Litigation Funding for Attorneys

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.  

Will Litigation Funding Work For My Business Claim? The Answer is Yes!

As the industry continues to boom,  litigation funding companies are beginning to take on more business, typically using a ‘one size fits all’ approach to managing client regardless of individual needs. Amerevision Legal Financing is different. We respect our clients' unique circumstances and concerns. Our revolutionary approach to litigation funding involves top-notch research and a focus on transparency and communication from start to finish. Once your claim has been assessed and accepted, Amerevision will invest its resources to further the goals of your litigation.

Our team invests in sourcing high quality legal resources and tools for each of our client’s disputes. We commit ourselves fully to the success of each claim, although we observe and respect the necessity of attorney-client privilege.  We believe that our involvement enhances transparency between client and attorney, and that a legal case is only as strong as the communication between all parties involved.

What makes Amerevision so exceptional is our willingness to intervene and provide funding at any stages of litigation or mediation. In addition to accepting both plaintiff and defendant clients, Amerevision also works with law firms and in-house counsel. Claimants are generally company owners or stakeholders who may not have the desire or ability to pursue claims with their own capital. Due to the high-risk nature of litigation, these companies frequently forfeit potentially valuable claims. By partnering with Amerevision, business owners have an opportunity to proactively pursue meritous litigation without the risk of financial ruin.

The ability to see a legal claim from start to finish and access to expert representation can make the difference between a business’ successes or failure. Our dedication to our clients and their specialized needs are unparalleled and set us apart from our competitors. If you think Amerevision Legal Finance could be the litigation funding company for your business, visit our website to apply and learn more about what we offer.​

Litigation Funding: A Concise Timeline- by Amerevision

In light of all of the recent media attention given to the litigation funding industry recently, wouldn't it be nice to know more about its history?

·         1765: Litigation funding isn't new.  It was an ancient practice, considered meddling and banned in much of Western society during the 18th century. William Blackstone, an English attorney and politician, calls third party funders “pests of society.”

·         1787: Jeremy Bentham, a British philosopher and the founder of modern Utilitarianism, decided to go against the grain and penned “Defence of Usury” where he articulated that “wealth has the monopoly of justice against poverty” and advocated for lawsuit lending.

Flash-forward to the 20^th century…

·         1908: The American Bar Association cautiously began to allow attorneys to charge contingency fees, which meant that they could perform work in exchange for a share of the potential reward.  This was intended to facilitate representation for people who couldn't afford to pay upfront.

·         1963: Civil Rights! In one of the most important "wins" for litigation funding, SCOTUS ruled that civil lawsuits were protected under the First Amendment as free speech, making it possible for N.A.A.C.P to back plaintiffs in cases regarded civil liberties.

·         1985: Pay attention business owners: Charles P. Hall raises $1 million from investors in order to finance a patent protection lawsuit. This, a strategy that is now popular, was innovative.

·         1992: Ken Polowitz, a mortgage banker, creates the first legal financing firm, Plaintiff Support Services, which offered support to plaintiffs awaiting a settlement from litigation.

·         1998: General Electric turns a $4.2 million dollar profit from funding a lawsuit for a discount retailer against Chase Manhattan.

·         2000: The American Bar Association formally embraces litigation funding.

·         2004: The American Legal Finance Association is created under pressure from NY Attorney General Eliot Spitzer.

So, there you have it: the most important dates in litigation funding history! To learn more, or for any questions about litigation funding, visit Amerevision's website at http://amerevision.com.