In the litigation industry, the holiday season, and the fourth quarter in general, is often referred to as ‘settlement season’. Attorneys are accustomed to a surge in year-end settlements. Receiving settlement money is beneficial for plaintiffs because they can have extra cash for shopping. While the holidays can be quite stressful if money is tight, that is not the reason the number of lawsuit settlements jumps around this time of year.
Why More Cases Settle Around the Holidays
There are certainly tax incentives for settling before the new year begins. Aside from extra cash to spend over the holidays, waiting until the following tax year can mean losing money because taxes will probably go up. Insurance companies benefit as well. They’re intent on cleaning out old claims, especially newer, lower-value cases that can drive up operating costs and legal fees. That provides an incentive for a plaintiff’s attorney to settle the case as well; the case will only decrease in value in the new year.
But claims that are older and larger in value can be subject to year-end settlements as well. Older claims are often settled through mediation, pre-trial settlement, and other means of negotiation. Insurance adjusters and plaintiff’s attorneys spend a great deal of time trying to close out smaller claims, keeping mediators and judges busy during the last few months of the year. Insurers can generate income by freeing up reserves, which can also translate into a higher bonus for agents and managers.
However, defendants and their attorneys don’t always want to settle cases just because the year is coming to a close. Discovery takes top priority if more time is needed to assess claims and liabilities. But if a case is ripe for settlement, now is the time open claims will be more closely looked at.
Types of Claims Likely to Be Settled
There’s no specific type of case that’s more likely to settle. In general, there’s an uptick in the kinds of claims FCA Legal Funding can provide lawsuit cash advances for, including:
- Auto Accidents: Including car, pedestrian, bicycle, bus, motorcycle, tractor-trailer, semi-truck, and ride-share accidents. Hit and run accidents are included as well.
- Personal Injury: Slip and fall, burn injury, dog bites, construction, and electric scooter accidents as well as premises liability, medical malpractice, and nursing home negligence cases.
- Product Liability: Injuries and lawsuits related to consumer product defects, industrial product accidents, and legal issues involving automobile recalls.
- Medical Devices: Personal injury cases involving hernia mesh, hip implants, knee and hip replacements, transvaginal mesh, and Mirena IUD products.
- Labor Law: Claims related to construction accidents, FELA – train accidents, Jones Act – maritime accidents, and general sexual abuse and harassment in the workplace.
- Pharmaceutical Drugs: Harm caused by medications such as GranuFlo, Talcum Powder, Xarelto, Risperdal, and Low-T pharmaceutical products.
- Athlete Injuries: Concussion-related lawsuits involving the NFL, NCAA, WWE, and NHL as well as injury cases involving Pop Warner.
What If My Case Doesn’t Settle in Time for the Holidays?
If it doesn’t seem likely your case will settle by the holidays, FCA Legal Funding can provide the money you need now, as an advance on your future settlement. It can cover medical bills, rent, groceries, and even legal fees not to mention holiday gifts for friends and family. Since pre-settlement funding is an advance on your future settlement proceeds, you pay nothing out of pocket and, if your case doesn’t win, you pay nothing back. Apply today on our website or call FCA Legal Funding at 310-424-5176 for information and assistance.