According to Sam and Jim Commenting on things that irk us off, make us laugh out loud or just seem too weird too believe According to Sam and Jim: Need Money to Sue Somebody? Look at Litigation Funding

Monday, June 24, 2013

Need Money to Sue Somebody? Look at Litigation Funding

Did you know you can borrow money to sue somebody? Well, you can. Never heard of Litigator Funding? Sam and I were browsing some publication - might have been the Wall Street Journal - recently and came across an advertisement offering to loan money to people wanting to sue the socks off somebody. We’re not kidding.

Apparently, if you think you have a winnable lawsuit against some person or company with deep pockets, but you don’t have enough moolah to sustain you through a lengthy court battle, you can go to an outfit that offers litigation funding and ask them to help you. This can be a risky business, but the litigation lender will usually only give you or your attorney money if it looks like you stand to win more than their initial investment plus a nice fat fee. Good luck on having anything left after you win your case though. By the time your own attorney (more likely TEAM) of attorneys finishes billing you and the litigator funder collects its boodle, you’ll have about as much chance of collecting a big chunk of your winnings as those poor slobs who think a hundred-million-to-one-odds give them a pretty good chance to win a mega lotto. You may win your court case, but you might also feel like you were raped in the process.

According to Wikipedia, my totally infallible internet encyclopedia, “Legal financing is a fairly recent phenomenon, beginning on or around 1997. In fact, it is new enough that many people do not realize that legal financing exists. The legal funding industry has risen from relative obscurity in the last few decades to the forefront of marketplace solutions for financially troubled attorneys and their clients. Prior to legal financing, many litigants had to settle their legal case early or for a lesser amount just to get some cash to avoid financial troubles. Many plaintiffs would face large companies who had deep pockets and might not be in a hurry to settle a case early with a fair settlement.”

So, if you’re in the market, check out this internet ad from Burford Capital a United Kingdom firm:

“Burford is in the business of applying the principles of corporate finance to litigation and arbitration. We work to treat legal claims as assets, the value of which can be “unlocked” and used for myriad purposes. What can that mean for you?
"There are a number of ways that Burford can assist lawyers, law firms and businesses, all of which are set out in this section of our site. These solutions can range from the straightforward funding of the legal fees and expenses for a case (or a portfolio of cases) to a wide and varied suite of corporate finance solutions for businesses and law firm.” 

By the way, Burford says it has $300 million to help you. Or, how do you like this internet ad from Oasis Legal Funding based in Chicago?

“Injured in an accident that wasn’t your fault, and tired of waiting for your case to settle?
Apply now for a legal funding. The application is FREE and if you don’t win your case you don’t pay us back! Start now!
"No one can get you cash faster than Oasis Legal Finance. Oasis even prides itself on being “an industry leader in the regulatory and legislative areas of the legal finance industry.”
All in the best interest of protecting the consumer, of course. No wonder America is going to heck in a hand basket! But maybe there’s hope (NOT!)

According to Wikipedia again, “The American Legal Financing Association (ALFA) was established in New York as a non-profit corporation in July 2004 and represents about 20 legal funding companies nationwide for personal injury victims. The organization's main goals are to establish standards for the legal funding industry and to serve as the liaison with the public, government officials, and the media.”

Excuse Sam and me for saying so, but this sounds like the fox guarding the hen house. We’re not saying all litigation funding is bogus, but three bags of poop on it when it sounds too much like a paycheck lending industry scheme.

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