January 20, 2016
Legal funding is a fairly new addition to the courtroom scene here in America, so it has quite a few critics who think that the change will ruin the American civil justice system, but these critics are being short sighted.
Why Legal Funding Critics Are Wrong
- Legal funding removes pressure: Some critics claim that third party contributions to cases pressures plaintiffs to seek high settlements in order to pay back their advances, but this couldnâ€™t be further from the truth. Legal funders provide settlement advances that only require repayment if the plaintiff receives a positive settlement or verdict. This actually removes pressure from the plaintiff and allows them to concentrate on whatâ€™s best for themselves.
- Legal funding avoids meritless cases: Critics have also argued that legal funding encourages frivolous lawsuits, but this argument doesnâ€™t make sense when you look closer. Legal funders would not get repaid if they funded lawsuits that were doomed to failure, so backers must be very careful what cases they help fund, otherwise they could quickly go out of business.
- Providing equal justice for all: Critics forget that many personal injury victims avoid civil lawsuits because they canâ€™t afford to take on big companies in court. Insurers, hospitals, and other responsible parties often have near unlimited resources backed by lots of money, but this shouldnâ€™t invalidate the harm they caused. Victims have a right to pursue justice, and legal funding evens the playing field.
To find out more about how Beacon Legal Funding can help personal injury victims seek out justice for their injuries, keep following our blog, Twitter and Facebook.
December 30, 2015
Litigation finance allows third parties to give financial support to many different types of civil lawsuits, and despite having critics, the practice has grown into a major industry here in America and internationally. However, do you know how litigation finance helps people?
Four Reasons Litigation Finance Helps
- Increases Access To Justice: The United Statesâ€™ justice system is built on equal justice for all, but the system has become so tangled up in filing fees and other expenses that it can take thousands of dollars to get anything done, but litigation financing can help by allowing people to better handle these expenses.
- Managing The Risk: Litigation funders also help consumers by removing part of the risk they take on when they take a case to court. Without funders, a plaintiff would take on the entire financial responsibility of a case, but with a funder, that risk is lessened, because repayment of legal funding depends completely upon whether or not a plaintiff gets a positive settlement or verdict.
- Time Savings: Insurers and big companies are professional defendants, and their most powerful weapon is delaying a case so long that a plaintiff canâ€™t afford to continue the case, but litigation funding can change that. Often companies will make fairer settlement offers or take measures not to delay a case, if they know the plaintiff is getting financial help and wonâ€™t be affected by delay tactics.
- Personal Injury Help: The legal funders at Beacon Legal Funding offer up to $50,000 in settlement advances that plaintiffs can use to pay medical bills, car payments and rent. This can make it easier for personal injury victims to pursue settlements and verdicts that will actually help replace what their personal injury has taken from them.
December 23, 2015
A Colorado court has delivered a decision that might endanger consumer legal funding in the state. This could force victims of auto accidents, slip and fall accidents, and malpractice to accept low ball initial settlements from companies looking to meet a bottom line rather than pay a truly fair settlement. However, the supporters of legal funding have not given up.
Should Payday Lending Rules Apply To Legal Funding?
A Colorado court plans to force legal funding companies to adhere to the Colorado Uniform Consumer Credit Code (UCCC). These codes were initially applied to payday loans due to scrupulous companies charging high interest on the loans they provided. These companies took advantage of consumer circumstances to profit, but that business is nothing like consumer legal funding.
â€śThis anomalous decision imposes state government regulations designed for credit products on property rights,â€ť says the Alliance for Responsible Consumer Legal Funding (ARC).
Companies like Beacon Legal Funding provide settlement advances to help personal injury victims get the fairest settlement they can, but these advances are not loans. A settlement advance only has to be repaid if your case reaches a favorable conclusion, which puts all the risk on the legal funder and not the plaintiff who receives the advance.
ARC is helping to fight this decision in the court room. The Alliance has already helped advance proper regulation of legal funding, and the organization is also dedicated to making sure legal funding isnâ€™t misrepresented by bad courtroom decisions. Keep up-to-date on this topic by following our blog, Facebook and Twitter.