Not every case meets the criteria for pre-settlement funding. Let’s take a look at the types of cases that qualify:
Personal Injury Cases
Personal injury cases are among the most common types of cases eligible for pre-settlement funding. These cases arise when someone is injured due to another party’s negligence or intentional actions. Some examples of personal injury cases that may qualify for funding include:
- Auto accidents (car, truck, motorcycle)
- Pedestrian accidents
- Bicycle accidents
- Slip and fall accidents
- Premises liability cases
- Dog bites and animal attacks
In our experience, auto accidents are the most frequent type of personal injury case we fund. According to an early estimate by the National Highway Traffic Safety Administration, there were 40,990 motor vehicle-related fatalities in 2023.
The severity of injuries and the complexity of these cases can vary greatly. However, pre-settlement funding can provide crucial financial support for accident victims as they navigate the legal process.
Medical Malpractice Cases
Medical malpractice cases involve injuries or harm caused by healthcare providers who fail to meet the standard of care. These cases can be complex and time-consuming, often requiring extensive expert testimony and evidence. Some examples of medical malpractice cases that may be eligible for pre-settlement funding include:
- Surgical errors
- Misdiagnosis or delayed diagnosis
- Birth injuries
- Medication errors
- Nursing home abuse and neglect
We’ve commonly seen cases where a misdiagnosis or delayed diagnosis has led to significant harm for the patient, requiring ongoing medical treatment and leading to substantial damages.
A very recent example is the Maya Kowalski case, involving charges of medical malpractice, wrongful death and battery by the hospital, which led to Maya’s forced confinement and her mother’s suicide.
Product Liability Cases
Product liability cases arise when a defective or dangerous product causes injury or harm to a consumer. These cases can involve a wide range of products, from medical devices to consumer goods. Some examples of product liability cases that may qualify for pre-settlement funding include:
- Defective medical devices (e.g., hip implants, transvaginal mesh)
- Dangerous or recalled pharmaceuticals
- Defective consumer products (e.g., appliances, toys, electronics)
- Faulty vehicle components (e.g., airbags, brakes, tires)
In a case we funded, a defective hip implant caused severe pain and required multiple revision surgeries for the plaintiff. Our pre-settlement funding helped the plaintiff cover their medical expenses and living costs while their attorney fought for a fair settlement.
Employment Law Cases
Employment law cases involve disputes between employees and their employers, such as discrimination, harassment, or wrongful termination. These cases can be emotionally and financially draining for the employee, who may have lost their primary source of income. Some examples of employment law cases that may be eligible for pre-settlement funding include:
- Wrongful termination
- Discrimination (age, gender, race, disability)
- Sexual harassment
- Retaliation
- Unpaid wages or overtime
In the 1986 case of Meritor Savings Bank v. Vinson, the U.S. Supreme Court ruled that sexual harassment creating a hostile work environment violates Title VII of the Civil Rights Act of 1964. The case involved Mechelle Vinson, who alleged severe sexual harassment and assault by her supervisor, Sidney Taylor, during her employment at the bank.
Despite any biases, we recommend that employees facing these types of legal battles consider pre-settlement funding to help them stay afloat financially while their case is pending. It can be a powerful tool to level the playing field against employers with deep pockets.
Other Types of Cases
In addition to the categories mentioned above, there are several other types of cases that may be eligible for pre-settlement funding, such as:
- Class action lawsuits
- Qui tam (whistleblower) cases
- Civil rights violations
- Environmental lawsuits (e.g., toxic exposure, contamination)
A question we come across frequently is whether class action lawsuits are eligible for pre-settlement funding. The answer is yes! In fact, we’ve provided funding for several high-profile class action cases, including those involving defective medical devices and dangerous pharmaceuticals.
Factors That Determine Eligibility for Pre-Settlement Funding
While a wide range of cases may be eligible for pre-settlement funding, not every case will qualify. Several factors come into play when determining whether a case is a good candidate for funding, such as:
- Strength of the case and likelihood of success
- Extent of injuries and damages suffered
- Expected settlement amount or jury award
- Duration of the legal process
- Representation by a qualified attorney
Let’s consider a hypothetical example to illustrate these factors. Imagine a construction worker who suffers a severe spinal cord injury after falling from a scaffolding that was improperly secured. The worker is unable to return to work and faces mounting medical bills and living expenses.
In this scenario, the strength of the case would depend on factors such as whether the employer violated any safety regulations, whether there were witnesses to the accident and the extent of the worker’s injuries. If the case appears to have a high likelihood of success and the expected settlement or award is substantial, the worker may be a good candidate for pre-settlement funding.
The duration of the legal process is also a key consideration. If the case is expected to take several years to resolve, the worker may have a more pressing need for financial assistance in the short term. Representation by a qualified attorney is also crucial, as it can impact the strength of the case and the likelihood of a favorable outcome