Important Facts to Know Before Taking Legal Action as a Recourse

• Neville Gabby
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• December 3, 2020

While we often read news of civic groups taking legal action, they do so only if they have financial support to see the case throughout the entire process. Generally, settling a dispute in court is regarded as the most effective way of resolving issues. However, due to the litigation costs involved, it is not alway the most cost-efficient method.

Legal Advisers Recommend Litigation on Meritorious Cases

Legal advisers recommend going to court especially on meritorious cases, such as seeking to recover costs incurred as a result of personal injury or damage done to one’s property, or even to one’s reputation. Mainly because filing a lawsuit is one way of forcing the offending party to agree to a settlement even before the case is heard in court.

Inasmuch as the financial costs of litigation can be extremely expensive, most defendants often see the practicality of settling the matter extra-judicially, or out of court, and agree to a settlement. That way, they can avoid incurring additional litigation costs that could go on for an extended period of time. After all, it is common for legal proceedings to drag on for years before the presiding judge issues a ruling to resolve a dispute.

What if the Suing Party Can No Longer Afford to Pay the Costs of Litigation

.On the other hand, there are cases where plaintiffs become financially disadvantaged; losing financial means to pursue legal actions while awaiting a court decision. A defendant who is aware of a plaintiff’s financial handicap could leverage such situations as a way to reduce or avoid payment of the amount being claimed as settlement, by allowing the case to continue in court.

One solution to such a predicament is to seek a reliable pre settlement funding company, preferably from among those reputed to offer the best lawsuit funding loans in terms of equitability. Availing a pre settlement lawsuit loan is the most likely solution because banks and other credit institutions do not extend loans for such purposes.

Inasmuch as this type of lending is not regulated, it’s a must to carefully compare the terms and conditions, especially the interest rates applied on the amount extended as pre settlement lawsuit loan.

How Does a Pre Settlement Lawsuit Loan Work?

Just to be clear, know that a pre settlement lawsuit loan is generally regarded as an investment on the part of the pre settlement lending firm. The latter will agree to providing a lawsuit loan only if a legal case has been filed, and if the results of their assessment indicate that the plaintiff has great chances of being awarded the amount being claimed as settlement.

Usually, the agreement is for the lawsuit loan borrower to pay the lending firm the principal amount plus interests and a funding fee based on the proceeds of the amount received as extra-judicial settlement, or as awarded by the court. However, if the court hands down a ruling that will not result in the awarding of a settlement, the lawsuit tending company cannot collect from the plaintiff.