Plaintiffs who need lawsuit funds obtain litigation financing from third parties. As a business owner who wants to bring another organization or individual to court, you are aware of the hefty expenses. Thus, you could benefit from receiving litigation financing. Many plaintiffs receive funding for small business attorney fees, investigative charges and court expenses. If you lack the capital you need to receive the compensation you deserve, consider litigation funding as an option. To achieve your goals with this option, read on and learn how to establish a fair litigation financing agreement.
Hire A Reputable Attorney
Before you begin the process of obtaining litigation financing, hire a reputable attorney. Search for attorneys who specialize in cases similar to yours. Moreover, look for lawyers who have won such cases. If you find a litigation financing firm that has a successful track record, you increase your chances of winning your case. When you meet with potential lawyers to hire, inquire about their ability to monetize litigation assets. If you have trouble finding an attorney who can meet your needs, seek out referrals from fellow business owners. Take your time to find the best litigation financing attorney. You need one that you can trust to assist you in establishing a fair litigation financing agreement.
Understand Litigation Finance Types
While your lawyer should be able to assist you in understanding terms, you should familiarize yourself with the litigation finance types as well. You know your current business and legal situations the best. Try not to rely on your lawyer for the initial step in deciding on a type of financing. Your options include consumer and commercial funding. If you are bringing another party to court due to personal issues, opt for the consumer option. This type of financing was designed for individuals who were injured as well as those getting divorces. On the other hand, commercial funding applies to business-to-business disagreements. If you are dealing with class actions or mass tort litigation, choose commercial funding as well. Use your personal situation to choose the best type of litigation financing.
Determine Level Of Funder Control
Also, determine how much control the funder has in your litigation financing situation. While you may be familiar with other types of funding such as group funding, this process differs. Many issues arise regarding funder control, which is why it is such a crucial component of any litigation funding agreement. Numerous parties believe that you need to disclose the specific details of your situation in your agreement. Only then can you clearly record the level of control the funder has. Some agreements provide funders with control over strategy decisions and settlement arrangements. If you do not want to give up control in such areas, let your lawyer know. Then, they can work to create a fair litigation financing agreement.
Include Plaintiff Advance Details
Your advance details need to be included in your litigation financing agreement as well. Some funders do not allow business owners to use their financing to pay off certain fees. One of the most common fees that funders do not permit is lawyer payments. If you cannot afford to hire a quality attorney on your own, request funding for the fees. If your funder turns down your request, you have two options. You can either look elsewhere for a loan or try to find a different funder. Ensure that the plaintiff advance details are in your litigation financing agreement to avoid any surprises and/or confusion down the road.
Establish A Confidentiality Agreement
Lastly, agree on confidentiality terms to effectively build a fair litigation financing agreement. As a business owner, you value confidentiality. When you were starting up your business, you likely created employee confidentiality forms to protect your company. Think of this confidentiality agreement as you would your non-disclosure agreement. If you are also an investor, consider how important company report data is for protecting investments. A confidentiality agreement is just as significant. Typically, litigation funding confidentiality agreements include details such as who must keep who informed. Write a clear and concise confidentiality agreement and include it in your litigation financing agreement. In doing so, you will protect any legal documents needed during the court proceedings.
In order to receive the funding you need through litigation funding, you need to establish an agreement. To do so effectively, hire an attorney who has experience with this type of funding. Then, learn about the two types of litigation funding to gain a clearer understanding of your situation. Record how much control your funder has over your decisions. Also put your advance details in writing to avoid confusion. Additionally, establish a confidentiality agreement to protect your legal documents and company information. Follow these steps to establish a fair litigation financing agreement.