Today, many plaintiffs who are considering legal financing worry about the exact role the provider of lawsuit advances will play in their cases. The truth is that when a plaintiff takes advantage of legal financing, that advance should have minimal effect on the case. LawMax believes in this so strongly that the company has structured its legal financing programs so they have often have no influence whatsoever on a case. There are four things that LawMax does to ensure that legal financing in no way impacts the outcome of a lawsuit:
LawMax generally does not advance more than 10% of the expected outcome of a settlement. This means that even if a plaintiff and his or her attorney decide to settle out of court for substantially less than what was expected, the attorney can still get paid his or her fee, LawMax can still be repaid, and the plaintiff will leave the lawsuit with a reasonable sum of cash from the settlement. This practice ensures that attorneys and plaintiffs never feel pressured to continue to fight a case in court if it would be more advantageous to settle out of court or negotiate a settlement when that is the smarter strategy.
LawMax does not offer any legal advice or counsel, instead deferring completely to the attorney(s) working on a case. LawMax is never a backseat driver, but instead supports the attorney 100%, no matter what decision the attorney makes regarding the case. If the attorney believes it is time to go for an out-of-court settlement, LawMax will never second guess that decision.
If the plaintiff loses, a LawMax advance does not have to be repaid. This unique form of non-recourse financing ensures that a plaintiff is not forced to negotiate under pressure to repay a lawsuit loan. If an attorney and plaintiff decide to abandon a case, nothing is owed to LawMax. This ensures that the plaintiff and attorney can always make the right decisions about the case, without worrying about repaying the legal financing. LawMax is only paid if the case is won or an out-of-court settlement is reached.
LawMax legal financing is paid out of the client’s portion of the settlement. This ensures that attorneys receive their agreed-to fees out of the settlement money. LawMax will never demand payment before the attorney is paid, and this ensures that attorneys do not have to worry about reducing their fees. Plaintiffs also can rest assured that their attorneys will continue to work on their cases with full attention, since the attorneys know they will be able to expect full payment.
If there is any effect that legal financing has on a civil case, it is to produce a larger, fairer settlement for the plaintiff. By providing funding when a plaintiff is strapped for cash, LawMax can often prevent a plaintiff from accepting an unreasonable low-ball offer from the defendant, often against the advice of counsel. With legal financing from LawMax, the immediate financial pressures of the client are addressed, and this enables the attorney to negotiate from strength, winning a larger, fairer settlement for the client!
