Case Cost Financing – Leveling the Playing Field

  • 09/03/2020
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Plaintiff law firms who fight for justice on behalf of their clients are typically matched up against some of the biggest and well-funded defendants in America: insurance companies, self-insured corporations and public entities. These corporate Goliaths have access to staggering amounts of resources and capital to devote toward any case.  This can result in a distinctly uneven playing field for plaintiff law firms. Meanwhile, plaintiff law firms are obligated to cover the various expenses associated with multiple concurrent cases, which quickly add up.

That imbalance of power often makes it extremely challenging to pursue justice against defendants, whose deep pockets allow them to run out the clock on contingency fee law firms. Justice delayed is justice denied – for litigators and their clients.

Fortunately, case cost financing can help level the playing field and ensure that plaintiffs’ lawyers have the financial wherewithal to obtain just compensation for their clients. This specific type of funding can allow for a more even match against large institutions like insurance companies, providing the plaintiff law firm with access to the full scope of resources needed to pursue a case to its conclusion.

Under the case cost financing model, lending is based on a firm’s projected fees, and case costs rather than its past performance. This underwriting analysis allows firms to leverage their most valuable assets, their projected fees and case costs and secure financing for current and future litigations.

More broadly, case cost financing provides firms with an opportunity to take some of the financial stress and challenges of running a successful business off their plates.  This allows attorneys to focus on achieving justice for their clients. Specialty lenders can provide crucial support in managing cash flow and can become an essential business partner for contingency fee law firms whose interests are aligned. After all, if corporations and insurance companies can build huge teams to work on these cases, then plaintiff firms deserve a network of support, too.

Everyone deserves their day in court as well as access to the resources needed achieve the best outcome possible. In many instances, that timeframe extends months and even years. For that reason, contingency firms need to secure resources allowing them to prosecute their cases to the fullest extent and to best serve their clients. Tailored case cost financing solutions ensure that law firms have the financial ability to take on the corporate Goliaths and focus on what they do best; achieve justice for their clients.