Legal Funding for Cases Involving a Minor
At FCA Legal Funding, we consider it a point of pride that we are often able to provide a much-needed measure of financial security for the majority of our applicants. However, because we believe that it’s important to make sure that all of our applicants are aware of any potential roadblocks that could arise during the approval process of the funds they have requested, we felt it would be helpful to address what is probably the most common type of request that regrettably has to be denied.
Requesting Lawsuit Funding on Behalf of a Minor
On a fairly regular basis, we receive inquiries about the possibility of providing pre-settlement funding for cases in which a minor (in California, this is anyone under the age of 18) has sustained personal injuries that are the fault of another party. In these cases, the parent or legal guardian of that minor has chosen to take legal action on their behalf in order to pursue the compensation they rightfully deserve. In and of itself, this is not really a very unusual situation from a legal standpoint, but it does unfortunately cause complications specifically related to the approval and distribution of lawsuit funding.
Usually in requests of this type, the parent or legal guardian of the minor who was injured – or the personal injury attorney they have hired to pursue their case – will contact us to ask what they need to do in order to apply for pre-settlement funding on behalf of the minor. These funds are typically intended to help cover the ongoing bills and other medical treatment costs related to taking care of the child who was injured while they await the resolution of their personal injury case.
The Risks of Lawsuit Funding for Minors
On the surface, it may seem like this is both a reasonable request for funding and also not significantly different from the standard pre-settlement funding requests that we receive and are able to promptly approve for our applicants. When it comes to providing funds to a minor – even when an adult guardian will manage those funds on their behalf – there are potential concerns regarding the questionable legal enforceability of any contract or funding agreement that could be reached. Further complicating matters is the unwillingness of most insurance companies to honor any lawsuit funding agreements that are made with or on behalf of a minor. The combination of these factors makes this particular kind of arrangement too much of a financial risk for legal funding companies to engage in and for this reason, funding for minors is rarely – if ever – approved.
If you would like to learn more about legal funding in California or if you are interested in applying for legal funding, FCA Legal Funding can help. Fill out our convenient online application for funding today. Once you’ve applied, our dedicated team will contact your personal injury attorney for information regarding your case and within 24 hours and you’ll receive an offer – with no obligations to accept.