Wednesday, November 3, 2010

Funder's ; Beware of funding infant's cases, unless you get a Judge to authorize funding up front.

I've been getting a fair amount of calls from attorneys who are seeking funding for parents of infant-claimants. This type of funding in dangerous and full of many potential land mines. Basically I have encountered three scenarios;
1. Parents simply want to take an advance on the infant's case. This is impossible to do; unless you get a Court order[ex-parte order]authorizing this. The reason is simple. An advance can be made and the ultimate Judge compromising the case can disallow the funding;
2. Parent has their own personal injury cause of action(i.e. negligently performed chilbirth resulting in a ruptured uterus). No problems here;
3. Case is settled. Attorneys and carrier agree to a payment on parent's loss of services claim. This is still risky. The Judge presiding over infant's compromise can still disallow the apportionment of $ to the parent. Under that scenario, the funder would be stuck.
So next time you have a funding request along those lines, call me and we'll talk it out.
Good luck

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