While there is no concrete number for a lawsuit’s costs, a generous lower bound is $10,000.
If you’re dealing with a complex litigation case as a company, you’re legal fees will skyrocket. In fact, companies are likely to owe tens of thousands, maybe millions, of dollars in legal fees.
If you’re worried about managing those expenses, there are financing options to consider. Keep reading to learn about settlement cash advances.
What Is Complex Litigation?
All lawsuits come with their own unique complexities. The litigation process allows one person or entity to take legal action against the party they believe wronged them. In general, the result is a monetary award, referred to as compensation.
However, there are subsets of civil claims, one of them being complex litigation law. Complex litigation is a specific type of civil case that companies often have to face. Common examples of complex commercial litigation include:
- Verdict judgment on appeal cases
- Copyright infringement
- Whistleblower lawsuits
- Breach of contract cases
- Security fraud
- Legal malpractice disputes
- Environmental disputes
- Stock arbitration cases
As you can imagine, complex litigation lawsuits proceed slowly–whether as a settlement or verdict. Hence, the process is costly. Let’s take a look at some of those common expenses.
The Costs of Complex Litigation
Litigation costs vary from case to case. Cases that fall into the complex litigation category can cost more, depending on the factors needed to prove the case and the time it takes to resolve the issues.
Common costs include court filing and processing fees, evidence collection, late fees, expert witness fees, and travel expenses. While those are the most common and are associated with the majority of lawsuits, other expenses can arise as the process moves forward.
While your attorney will likely try to explain all the potential fees upfront, there’s no guarantee that unexpected costs won’t pop up. For example, if you need additional witnesses or evidence collection to be extended to ensure you have what you need to prove your case, you could be looking at a much larger bill than you expected.
In most instances, all participating parties are responsible for their own litigation costs. But remember, every case is different. Only your lawyer can tell you how the finances of your lawsuit will play out.
If your company is facing a complex litigation matter and you’re short on cash, it’s important to have an idea of what your options are. One of the most popular options of lawsuit funding.
Funding Options for Plaintiffs
Legal funding could be for you if you are worried about the up-front capital to manage your complex civil litigation matter.
A lawsuit loan is a type of cash advance for a settlement award or lawsuit judgment that has yet to finalize. Regulations vary from state to state, so it’s important to understand what your options are based on where your lawsuit is being tried.
Whether you need $10,000, $1 million, or $10 million, applying for a lawsuit cash advance will ensure you have the funds needed to see your case through to the end. All you need to do is work through the application process.
It’s important to note that a lending company is considerably more likely to take you on as a borrower if you have a strong case. This is because in the event your lawsuit does not end in your favor, you do not have to repay the funds.
How to Apply for Legal Funding
Applying for a lawsuit loan is simple. All you need to do is fill out an online form with your name and contact information, the name and state of your attorney, the type of case you’re in the midst of, and the amount of money you’re requesting.
It’s important to note that your complex litigation attorney needs to be on board with the process. Once you submit your application, an underwriter will review the details and contact your lawyer. In the event they are not on board, your application will be denied.
If the sales team is able to collect the case documents from your lawyer’s firm, the underwriter will review the documents and determine if you are eligible for funding.
Depending on your situation and the underwriter’s decision, you could have your funds in as little as 24 hours.
Repaying Lawsuit Loans: What You Need to Know
As we mentioned, you’ll only be responsible for repaying the borrowed funds if you win your lawsuit. The lawsuit loan is paid from the settlement or judgment after other expenses are taken care of first if you win.
The immediate expenses that must be managed include attorney fees, litigation costs, and any applicable liens. Once those expenses are paid, the lawsuit loan lender receives the remainder.
In terms of a funding fee, most run between two percent to four percent each month. Then, when your lawsuit settles, that amount of money is added to what you owe the lawsuit lending company.
Learn More From Legal-Bay Lawsuit Funding
Legal-Bay Lawsuit funding has over 25 years of experience funding every type of civil lawsuit. So if you’re in the midst of a complex litigation case and are strapped for cash, we can help.
The sooner you get in touch with us and apply for a loan, the sooner you’ll have the money you need to move forward with your lawsuit without worrying about running out of money. Contact us today to learn more.
