Applying for attorney legal funding is a good idea if you need funds to support a client’s case. Most clients have financial pressures that may prevent them from continuing with a lawsuit. You can provide legal services on a contingency fee basis, but prosecuting a case can take months, if not longer. We know an attorney’s financial constraints can hinder successful litigation. But there’s a way to keep a case going until it settles, which excels over other financing options.
Here are a few reasons why you should apply for attorney legal funding:
Legal Funding Is Completely Ethical
Litigation finance is a growing industry and rulings have supported its continued growth. A formal opinion released in 2020 by the State Bar of California Committee on Professional Responsibility and Conduct confirms that legal funding does not interfere with the ethical practice of law.1 That’s assuming the client gives informed writte consent to the agreement.
The State Bar of California supports attorney legal funding via these points:
- Lawsuit Funding Can’t Interfere with a Lawyer’s Duty to Clients: An attorney’s duty of loyalty to the client must remain intact, and the funder cannot control the litigation process in any way. They can’t direct any other party to try to settle the case either. Nor can they influence how much a case settles for.
- Informed Consent Is Required: Applying for legal funding requires sharing confidential information. If you’re seeking funding for a case, the client’s informed consent must be obtained first. Signing a confidentiality agreement is one of the first steps of the process. Only after the client signs it will the funder begin reviewing the case.
- Champerty Does Not Apply: Champerty, which is the practice of maintaining a lawsuit in return for a financial interest in its outcome, is not prohibited in California. Therefore, no basis for enforcing laws restricting litigation funding agreements exists. Other states have laws that make enforcing such agreements challenging.
Attorneys Can Engage In Separate Communications with Funders
You don’t have to share every attorney-client communication with the funder. Rather than providing an actual copy of each interaction, you can provide the funding company with identical information and analyses. Many courts have held that the work product doctrine, which protects the attorney-client privilege, isn’t waived so long as sensitive details aren’t disclosed to the opposing party. For this reason, a non-disclosure agreement may be executed by the funder to safeguard privileged materials and communications.
Reduced Pressure to Settle a Case Early
If a client can’t afford to let the legal process play out, an attorney has few options. This prevents the pursuit of a higher legal settlement to get the client the compensation they deserve. Funding companies give lawyers the time and resources to build a stronger case while avoiding any measures that can potentially interfere with the process.
Legal Funding Can Help Your Business Thrive
As an attorney, you must focus on the practice of law and operating your business. Running a business requires capital. If working on a contingency fee basis, there are expenses to cover while building a case. However, you face the risk of nonpayment or a smaller payout than expected. A non-recourse cash advance can cover the costs of building a solid case, discovery, travel, and hiring expert witnesses. It can also pay for administrative and advertising costs and maintaining an office space.
You Can Fight for a Better Settlement
Successful attorneys have a long list of clients with high settlements. With sufficient funds, you won’t be forced to accept a lowball settlement or be pressured by tactics used by insurance companies and defense attorneys. Pre-settlement funding helps pay for case expenses while a settlement is pending. Funding companies understand the potential value of cases, so they will accept case inventories as collateral and proof your firm can repay the advance.
Attorney Legal Funding Is Easy to Apply For
With lawsuit funding, there’s no credit check or lengthy approval process. The funding company just needs to know the facts of the case and the type of financing you need. An offer is based on the strength of a case, its chances of success, and its approximate value. Underwriters will also weigh the potential timeline of the lawsuit until resolution.
At Fund Capital America, our online application process is fast and simple. We can approve applicants for funding in as little as 24 hours after evaluating a case. Our financing options for attorneys include pre-settlement loans, post-settlement funding, lawsuit cash advances, and a settlement acceleration program. To get started, apply for attorney legal funding or call (855) 870-2274 today.