In this can’t miss article, Texas attorney Eric Woomer talks about the highlights of a headline-grabbing year for litigation finance and breaks down the differences between litigation finance and consumer legal funding.
The big difference? “…the money goes to everyday people to meet basic living expenses, not to fund any litigation or pay legal bills.”
More from the article:
Funding is provided on a contingent basis, like with litigation finance, and can help plaintiffs see their day in court even if they don’t have oil money.
Most people who use it are pursuing a fair claim settlement from an insurance company after a car accident, and are out of work due to their injuries. With 76% of Americans living paycheck to paycheck, many have found it hard make ends meet while letting the legal process work.
Professor Jeremy Kidd from Mercer University, one of the ARC Advisory Council members is referenced:
Some critics will rail against all legal finance resources alleging that funding of cases will increase litigation, encourage frivolous lawsuits, and hurt the economy. Yet, these assertions conflict heavily with Kidd’s 2015 research. Regarding consumer legal funding, Kidd concluded that “when legitimate claims are brought and justice served, it can actually benefit the economy by deterring bad and inefficient behavior.”
Read the article HERE (page 21).