Why Trial Attorneys Need Case Cost Funding/Case Disbursement Funding
Typically, trial attorneys or plaintiff’s attorneys work on a contingency basis. This means that they do not get paid until the end of the case, if at all. While this scenario can lead to a large payoff for the plaintiffs’ damages and recompense the attorney for his or her time and risk in taking the case, it can also lead to lots of expenses and cash outlay for the trial attorney.
Plaintiff’s attorneys across the country currently have hundreds of millions of dollars if not billions tied up in case costs and case disbursements. Case cost funding and case disbursement funding can transform attorneys’ case costs into working capital. Case cost funding and case disbursement funding can help attorneys to manage cash flow. Instead of using their own money and capital to prosecute cases, the attorney receives case cost disbursements from a legal financing company.
The attorney then does not have to worry about where the money for expenses such as court costs and expert witnesses will come from, thus enabling him or her to wait longer and with less stress. This is a win-win situation for the attorney and his or her client, as they can prosecute their cases to the fullest extent, without having to settle too soon due to cash constraints. Case cost case funding and case disbursement funding enable law firms to focus on building their practices as well as their profits.
Facts About Case Cost Funding/Case Disbursement Funding
- Case cost funding/disbursement funding is a non-recourse funding advance; if you do not win your case(s), you owe the legal financing company nothing
- Attorneys can pay case cost expenses and disbursement costs without using their own capital
- The client can pay the monthly usage fees from settlement or award at end of case
- Case cost funding/disbursement funding requires no monthly paymentsand no up-front payments
Law Firms Increasingly Turning to Case Cost Funding/Case Disbursement Funding
Now more than ever, trial attorneys and law firms are facing cash crunch issues. As a result, law firms and trial attorneys are increasingly turning to case cost funding/case disbursement funding to help bridge the gap in these uncertain times. Rather than having no access to their capital for long periods of time, law firms and trial attorneys can invest their capital into their practices, advertising, or savings. Case cost funding takes the contingency out of contingency lawsuits, making the life of a trial attorney more stable.
This is an idea whose time as come, producing greater settlements and more security for plaintiffs and attorneys. Since the costs are borne by the plaintiff, case cost funding/case disbursement funding provides a huge financial lift to law firms and plaintiff’s attorneys.
