Thursday, August 12, 2010

Only One Way to Fund the Family on an Infant's Claim; Get a Court Order.

Periodically, I will get calls regarding funding for the parents of an infant claimant. While funding for a parent"s loss of services claim on a very good case is done, the only way to provide funding on an infant's claim is via Court Order. The reasoning is two-fold;
1. Technically no one has authority to encumber the infant's case[see Article 12 of the CPLR] and
2. If monies are advanced against the claim/case, the Judge who ultimately presides over the infant's compromise order may simply deny the funding repayment. Then the funder is stuck.
The answer, proceed via ex-parte order with a supporting attorney's affirmation and parent's affidavit seeking judicial consent to a prospective funding transaction. Once approved , the order can be sent to the funder and attached as an exhibit to the funding agreement. Everyone is covered!
Most importantly the family receives desperately needed funds and the the Judge who ultimately presides over the compromise will be bound by the order permitting funding.

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