Bad Liability, Surgery Funding, Not a Good Combination.

I guess as a funder for 5 years (over 5000 deals completed) you see all kinds of requests. Big, small...client , attorney, settled, unsettled.... Well, over the last 3-4 weeks I have received two funding requests to fund spinal fusion surgeries. Both requests were in the 50k range. The problem with each was one thing; liability; yikes!
Yes, one case was a Transit Authority(bus) "short stop case"; the other a question of lane changes. If we funded $50,000 surgeries ,there would need to be a minimum 100k settlement to get us repaid; more likely 200k if they wanted to put money in the client's pocket.
My opinion; based on facts presented was that they would never pay that kind of $ and defendants would try liability...further increasing risk of the deal. So would I fund a 50/50 case with big potential damages? Usually not, too risky. In certain situations though with the right attorney, right venue and right carrier I would strongly consider.
Doesn't hurt to ask.

Pharmaceutical Settlements; Funding , A Way to Ease Clients' Wait.

Cases are now settling left and right. The latest one being Avandia. Yes, we provide post-settlement for these cases to clients and attorneys alike.
As we all know the post-settlement process can be cumbersome and time-consuming. In some situations it can take 9 months to a year to get paid. So what better way to ease the stress of waiting and the constant stream of calls from clients asking " when will the money be in".
We can streamline the process with very little time being required from the law firm to fund their clients......and the rates, lowest known to man!
Give me a call...I'll walk you through the streamined process.

Calling For a "Payoff Figure"; Always Good Practice.

As a case comes up for conference, mediation, trial or ultimately reaches a settlement, I advise all attorneys to call in for a "payoff"; what the client will owe as of a certain date. This is good practice and accomplishes the following;
1.Let's an attorney know when he/she is negotiating a case how much the client will owe from his share;
2. Let's the attorney know when that $ figure will increase and
3. Gives the funder a warm, fuzzy feeling that the attorney is aware of the "funding lien" and will take all necessary steps to protect the "lien".
Once a "payoff " is requested, the information is generated at "the speed of light" and faxed and emailed to counsel. Followup requests can be made thereafter as well.
Remember, don't just rely upon what you see in a contract(there may be multiple contracts) , request the payoff.... it's always safer for all involved.

Locking It In; Easy as Pie.

Communication, a 13 letter word...Well in reality a fax, email or phone call usually will suffice. Had a situation yesterday, where a case settled on July 1st. The rate was due to increase on July 27th, and the settlement monies had just been received. The attorney a regular customer of mine called and asked what could be done.
Very simply I told him, that we will " lockin the amount owed " before the increase. I also confirmed with him that when the settlement funds cleared he would send the amount due and owing for funding.
Moral of the story; "just ask"!

Funding,Don't Knock It!

I'm presently working on funding a case which involves a heavily insured truck which rolled over, smashed a vehicle and the occupant of the car suffered bi-lateral leg amputations. Currently there is an offer to settle in the $6 million range. Client wants it, attorney doesn't ; he thinks it's worth $12 million. So how can I help?
Easy. The plaintiff will agree " to hold out " if he can get a $250,000 advance. That advance will cost him roundabout $37, 500 every 6 months. Let's say the case drags on for another year. The cost of the advance is therefore $75,000. By giving the plaintiff some financial relief, he can now wait and get the $10-12 million value he deserves. Three million plus in his pockets vs. $75,000 cost of money. Good deal? Judge for yourself!

Liquidation Bureau Settlements;No Problem

What would you consider to be cruel and unusual treatment ? Hit in the rear, quad, but 25/50 coverage with no um....We've all been there. How about a case settles for $950,000 in the middle of July. No referrer. Cool 300k fee. Saves the summer, you think.
As it turns out you have the double whammy; Infant's compromise plus State Liquidation Bureau. You're looking at 18 months of hard time[lol].
Well I have the answer; great rates and ability to expeditiously fund large deals for you.

Try me, you'll like me.

Funder's Ten Commandments.

1. Thou shall develop relationships of trust with good attorneys.
2. Thou shall not fund bad cases.
3. Thou shall charge low, reasonable rates.
4. Thou shall be an ally to the plaintiff's bar.[available 24/7]
5. Thou shall not fund Countrywide cases.
6. Thou shall not fund premises cases without notice.
7. Thou shall advance between 10-20% of value of the case.
8. Thou shall not work with uncooperative attorneys.
9. Thou shall always work with a sense of urgency.
10. Thou shall obey the attorney's wishes ;i.e. if the attorney says limit client's funding or "no more funding", obey his command.

What Documents are Needed to Fund a Premises Case?

When we fund a motor vehicle case all lawyers know to send in an application, police report and meds. For some reason the documents we receive in the first instance on "premises cases "are usually not complete. Probably the main reason is that very rarely is there an aided report or incident report for a premises accident. Yes, there are c2s and c3s for work related accidents[labor law etc], but not for a slip and fall on the front steps of a private apartment complex.
Typically the attorney will send us pages and pages of meds, a bp and/or illegible black and white photos of the defect. Some firms will actually send us an engineer's report, scanned color photos or a witness statement. God bless. We're really not looking for anything earth-shaking; simply something prima facie establishing "notice" which we believe will be sufficent to overcome summary judgment and ultimately get the case to a jury.
So in the future, make life easy on both of us...just please SEND me a few(something, anything) liability proofs.

Medicare Crisis; Contact me...New Special Rates on Settled Cases.

Come October, the Medicare crisis will be in full bloom. The effect on clients and law firms alike will be devastating. In response to this we are rolling out new , lower rates on settled cases; 2 % per month(no monthly compounding). We recognize that many law firms who have never had to fund before will be forced to seek funding to stay in business.
This rate which will carry a three month minimum is so low that it can't be passed up! Contact me for more information.

Clients Have Very Short Memories.

One of the reason that most funders (with brains) like to keep advances between 10-20% of the total value of the case is to avoid clients losing the incentive to settle because there is not much money left on "the back end " for them after disbursements, attorney's fees and repayment of the funding lien. Clients' knee-jerk reaction is to roll the dice and try the case. If they hit big great, if there's a low number or defense verdict, the client says "well only the attorney and funder got screwed".
Here's a typical scenario. Client gets a $5000 advance. There is a settlement offer of $15,000.
Breakdown would be as follows;
1. $15,000
2. Expenses-$500
3. Net Recovery-$14,500
4. Attorney's Fees- $4,833.33
5. Client's Share is $9,666.7[before liens]
6. Less $5000 advanced with fees now equals $6,666.67
7. Balance due client $3000 at time of settlement.
***So in reality the client initially received $5000 as an "advance " on settlement plus he/she would receive another $3000, for a total received of $8,000. But, what happens? The client says I'm only getting $3000, the other $5000 "doesn't count"(short memory). The client then becomes stubborn, turns down the offer and the case is lost on threshhold. Everyone loses! I always ask the attorney if the client is coachable.
Moral of the story; always remind the client that the amounts received from funding are part of the ultimate settlement.

If You Don't Want Client to Get Funding; Let Me Know and We'll Turn them Down Diplomatically.

One of the reasons I have had sucess in the funding world is because 99% of my deals are reccommended by attorneys. Couple that with the fact that I have been able to " weed out the stinkers". Lastly,add good underwriting and there you have it.
I still find that there are basically two kinds of attorney referrals;
1. Those attorneys who really want to obtain funding at a reasonable rate for the client and
2. Those attorneys who want to get the clients off their back.
If you happen to fall into category number two(2), let me know ahead of time and the process can be shortened and a professional looking "turn down letter" can be prepared and sent to you and client. Otherwise a "bad liability case" or a case with a threshhold injury will get dragged through the mud and ultimately denied. That creates nothing but bad will.
A quick phone call or email to me can go a long way.

How Do I Lock in a Payoff Amount?

Many funders work with funding rates covering six month periods of time. So for instance, if a deal is funded on January 1st, the rate is good until July 1st . In my five (5) plus years of funding , I have always stressed communication to the attorneys I work with.
Let me give you an example of a very common occurrence; a case settles 20 days before a six month period runs out. The settlement funds most likely will not be in and "cleared " before the six month cut-off date. What should an attorney do?
My suggestion is to contact the funder, let them know the case is settled and that the monies are expected in shortly. Provide them with a copy of release, stip. and transmittal letter to the carrier showing the pertinent dates. Then ask them to "lock in" the payoff amount which was good BEFORE the six month period expired.
Most funders will appreciate honesty and communication and will oblige. This can save a client(or attorney) hundreds if not thousands of dollars.[just one email or phone call].
If you ever find yourself in one of these situations, give me a shout(or email me ). I'm more than happy to assist.

Medical Lien Fundingl What is it?

As we can all appreciate, attorneys and clients are not the only ones with funding/cash-flow needs. How about physicians, mri facilities, surgeons, chiros and physical therapists to name a few. In accident cases where there are no available first-party insurance benefits(like worker's comp. or no-fault) medical providers are forced to treat plaintiffs on a "lien".
This arrangement can be beneficial to the client, medical provider and attorney;
a. client-gets necessary treatment and does not have to pay until the case is settled;
b. medical providers are not bound by the notorious low fees inherent in no-fault and worker's comp. fee schedules and
c. attorney-due to the client's ability to get necessary treatment, cases now can get the proper "medical workup; increasing the value of the case.
So everybody's a winner ? Not all the time. There are endemic problems that result from treating plaintiffs on a lien;
1. Medical providers may over- treat; recognizing that almost all liens are negotiated;
2. Most medical providers don't address the "merits of the case". Since a lien is conditioned on the ultimate success of the case, a lien on a bad case is basically worthless; and
3. Liens are always negotiated down. So it is not a perfect world; as you can see.
So what is medical lien funding? This is a funding transaction, where for a discounted price we purchase the lien from the doctor directly. We underwrite the case exactly as we would a plaintiff's funding application. After payment is made to the medical provider , the funder owns the lien and assumes all the risk.
At the end of the day the medical provider gets "cash on the barrelhead" and the funder can make a nice profit....if the case does not tank....
If you are a medical provider, call me to discuss in more detail.

Trial Reporting; Daily Coverage.

One thing I always wanted to see when I was practicing and even more so now as a funder is what attorneys are currently on trial, where and on what types of cases. For a young attorney there is no better way to learn than to observe a seasoned veteran. As a funder I like to see what's happening down in the trenches; what cases are settling, what carriers are forcing attorneys to take verdicts, who's settling, which judges are plaintiff oriented(defense oriented), which counties remain the best places to try cases etc.?
Well you won't have to wait much longer. I just started a project to bring this information to the Bar daily........Stay tuned. Coming this fall.

How Do I Go About Getting Funding for My Trial Costs?

For all of you who are trying cases for a living it is not unusual to have to fork over $50,000 for trial expenses , the large majority for experts. To make matters worse, most experts have to be paid in advance{non-refundable} to have them "hold the slot " for you.
So how do we secure funding for you ? Since most funding companies will not and do not provide "pre-settlement funding " to attorneys(usually attorney funding is offered post-settlement) , we have to be a little bit creative. I will simply have you submit a generic "client funding " application, without specifying what the proceeds will be used for.
The funding request is then reviewed like any other request; and upon approval and funding you work things out with the client as to how proceeds will be used. Totally above board, " no harm, no foul".
Contact me, I'll walk you through the process.

Keys to a Successful Attorney-Funder Relationship

I've been funding now for over five (5) years and I've built a lot of strong relationships with attorneys in New York and nationwide. Funding relationships should NEVER, EVER be taken for granted. I try to treat every deal, big or small, new customer or old with knowledge, respect, professionalism and a sense of urgency (even some humor-no extra cost). One thing though; I will always talk candidly with the attorney and I will never SUBMIT A DEAL I DON'T THINK WILL FUND[OR SHOULDN'T FUND]. I will , if the attorney requests it, send a nice "turn down " letter . I am also available nights and weekends via phone, fax, cell or email. [phones and faxes are forwarded to my house for 24 /7 service].
What do I expect from the attorney;
1. Honesty,
2. Cooperation in getting the the deal through,
3. Reasonable accessibility,
4. Responsiveness in obtaining statuses and
5. Timely remittance of monies upon settlement{* and of course good cases-lol].
It seems simple, and yes it can be. If the attorney is honest and cooperative I will go to the end of the earth to protect him/ her and push their deals through.

Yes, Funding Available for Mass Tort Litigation, Pharmaceutical Litigation and Even Class Actions.

As litigation has evolved, expanded and become more expensive, funding needs have also grown. Litigation costs as we all know have increased dramatically as well. It is not unusual in a catastrophic automobile case to retain a reconstruction expert, neuro, ortho, voc. rehab expert, economost and life care planner; all who must be paid for workup[3101d"s}, trial prep and trial appearances. Not an insignificant sum, I can assure you. I of course can assist you with that.
But for those who have handled mass torts, pharmaceutical litigation and class actions the litigation expenses can put a stranglehold on your cash-flow, your practice and your life. Not many firms can truly fund these costs without a huge bank-line, funding or other financing arrangements. The phrase " last man standing" accurately describes a plaintiff's firm trying to make it to the finish line in the biggest case of their careers.
But you don't have to put that second and even third mortgage on your house, empty your 401k, sell stocks, fall behind on payroll taxes and office rent. Take a deep breath, and contact me so I can help you formulate a plan to fund your biggest cases while maintaining stability in your professional and personal lives.

Beware of Funding Agreements That Your Client Never Told You About.

Believe it or not, there are actually funding companies out there who will do deals with your client; but will not require a signature from you, the attorney. My funding practice is that I get 99% of my deals from the attorney so I know the source of the deal at all times.
So getting back to these funding companies who don't require attorneys' signatures...this is a real two-edge sword for them. On the one hand the attorney can't step in and obstruct a "bad deal". On the other hand, the attorney may not know about the funding at the time of settlement. Either way it's a mess!
Moral of the story, grill your client about existing funding agreements like you would about prior and subsequent accidents. Who knows; you might learn of a bad deal, bring it to my attention and I can step in and refinance and consolidate the prior fundings.

Funding on a Verdict.

I believe one of the best times to fund a case is after a plaintiff's verdict. Obviously, an even better time would be after post-trial motions are resolved in plaintiff's favor. The point here is just because an appeal will ensue , it doesn't mean a case is not fundable.
When evaluating the case we'll look at the underlying merits of the case[liability and damages], size of verdict, last offer before verdict and whether anything raised at the time of the post-trial motions could result in the verdict being "thrown out" and the complaint dismissed. A funder is much more likely to fund a case on appeal where damages are at issue; rather than liability.
So if you have a verdict, which looks like defendants will engage in their regular pattern of delay...call me...I may be able to do something for you or your client.

Funding; We're Here through the Long, Dry, Hot Summer.

Well the summer is here. Vacations planned, kids home for summer, trials you were counting on "kicked over " to September, rent due...well you know the story. It's all about "cash-flow"!
To add insult to injury you're dealing with the new medicare headaches.
Then at last a big settlement; but wait, it involves an infant and defendant is The City of New York. Yikes.... Will your bank loan against settlement? Of course not.
So that's where I come in. If the case is settled , I can provide immediate funding based on the closing documents with confirmation of the settlement amount . I guarantee getting you the best rates and can provide funding up to $1 million .
So don't worry, we can work together and keep things moving through the steamy heat of July and August!