Imagine a world where there is no legal lending company. Take a minute to imagine what the legal practice and life for plaintiffs would be like if this industry were to be completely obliterated. There has been a lot of propaganda surrounding lawsuit funding companies.
The fact is, there are many careers if you are looking into entering the legal funding industry. You can be a financial analyst, financial services coordinator, investigative analyst, investigator, and dispute analyst, among many more. These are the people who hold up the practice of legal funding, along with the investors, of course. And in their absence, we contend that the world would hardly be a better place to live in.
- Some Law Firms wouldn’t be in Existence
The practice of law is very high risk, and to win, litigators need financing to find services and other tools that would maximize their chances of winning cases. For instance, it’s a risk to take on a client who does not or cannot pay upfront – the attorney commits his time and the firm’s resources continuously, not knowing for sure that a payment will be received.
Lawsuit funding companies put up the funds to enable such law firms to carry out their work without leveraging too much of the firm’s existing resource pool. They can therefore take all the necessary action to win the lawsuits for their clients since the immediate funding threat is eliminated.
- Plaintiffs would not have Access to Legal Recourse
The most important role of a legal funding company’s is to provide plaintiffs with the financing they need to hold fort and meet legal expenses while their lawsuits are still being litigated. These advances are to be paid back if the plaintiff wins an award or settlement, and are not payable if they lose.
Because of this, many plaintiffs who do not have cash upfront can access legal assistance, and it also eliminates the urgency so that plaintiffs don’t settle the cases for much less than they’re worth, just because they are in a dire financial position and they need money. If plaintiffs couldn’t access legal funding, most of them wouldn’t bother pursuing justice because they couldn’t afford it.
- Justice would belong to the Rich
Legal funding companies attempt to level the playing field between rich, high-influence defendants and plaintiffs who don’t have as much money or clout. These defendants have resources to access top-notch defense and other tools to help them win the case, and so would invariably win, whether or not they were on the wrong.
Financial constraints would cripple the plaintiff’s case, or make them get strong-armed into accepting a meager settlement simply because one party has all the power and wishes to exploit it to the fullest. Legal funding helps prevent miscarriage of justice in this manner, and by extension to strengthen the justice system.
Charlie Brown has been working in the legal industry for more than 5 years now. He has built a reputation as a great human rights lawyer. For more information or further assistance from lawsuit funding companies visit his website.