Settlement Funding—A Financial Solution to Settlement Delays
Unfortunately, the simplest personal injury cases where the injury was caused by negligence by a third party can takes months to resolve.
Los Angeles, CA, January 23, 2017 (Newswire.com) - According to the National Highway Traffic Safety Administration 6 million car accidents take place annually in the U.S. resulting in 3 million injuries. The Bureau of Labor Statistics reported there were approximately 2.9 million nonfatal workplace injuries and illnesses in private businesses in 2015—with over half involving missed days from work. The fact is millions of people are injured in accidents every year—preventing them from earning income and often creating mounting medical bills they can’t afford to pay.
Unfortunately, the simplest personal injury cases where the injury was caused by negligence by a third party can takes months to resolve. Even when a case settles quickly, it can be another six weeks or more for the injured party to finally receive financial compensation. In addition, if the case goes to trial, more time is necessary for an eventual day in court.
“While the plaintiff’s bills mount, delays in case resolution can work in favor of the defendants and their insurance companies,” says Rockpoint Legal Funding President Ramtin Ghaneeian. “If a defendant knows that the plaintiff cannot afford long settlement negotiations, it may be tempted to use that knowledge to convince the plaintiff to agree to a lower settlement amount in return for a faster resolution. An injured party, in financial straits because they cannot work, may be desperate enough to take a lower settlement offer just to ensure bills are paid.”
That’s where pre-settlement litigation advances come in. Although they have been available to plaintiffs for more than two decades, the demand for these kinds of advances have increased as courts have become overwhelmed and cases take longer to resolve.
Litigation advances bridge the financial gap that occurs between the injury date and settlement date. Advances take the worry out of the often tense, unfamiliar world of litigation that injured parties and their families face. Because the settlement funding company works closely with plaintiff counsel, funding is provided quickly (usually within 24 hours). And, if the plaintiff loses the case or a settlement can’t be reached, he or she does not have to return the advance—an important feature that provides peace of mind not typically found in the judicial process.
Source: Rockpoint Legal Funding