Third Party Litigation Funding – Understanding The Legality Of The Concept
There have always been complaints and agitations about how the legal services are becoming more and more unaffordable for the common people. Most of the arguments made in this case are relevant because these days, maintaining a pending legal case is not an easy task at all. There is attorney fees to look at and legal application charges. Plus investigations will be made which will again be a cost on your pocket. Stamp duties, legal submissions, escrow and bail money – the list just goes on and on. There really isn’t much you can say other than that legal services are now the domain of the rich only. But there are many new concepts coming up that are geared towards easing this financial burden on the pockets of the parties in a case.
I am talking about third party litigation funding. There are companies out there that are willing to lend money to plaintiffs and defendants who are fighting legal battles, helping them in paying their bills while keeping their cases alive. This amazing service has enabled many people, who were hitherto unable to even file applications, to fight cases and get justice delivered.
Initially third party litigation funding was limited to personal injury claims but things are changing now. Lenders are now advancing their product span to include more complex litigation like intellectual property rights and other civil suits. More are more people are availing of these services to facilitate their cause. But the question may arise as to the legality of such services. Legal processes are often long drawn and carry on for an extended tenure of time for which it becomes very difficult for the attorney or the plaintiff to keep bearing costs.
The New York City Bar Association recently released a new formal Opinion regarding third party litigation financing. The Opinion states that it is not unethical for an attorney to represent a client that enters into an agreement with a third party lender. As long as the lending contract being entered into is valid and all the interests of the parties involved have been duly disclosed, there shouldn’t be any questions arising on the transaction.
With such formal support coming up for the concept of third party litigation financing, lending companies will only receive more encouragement to provide financial help to those who need it. The idea is to bring legal services back into the domain of the common man. And this system eases the burden on both parties involved in the case, allowing them to continue their life as normal while the legal battle is underway.
Of course, the risk involved in the loan transaction is significantly higher than most financing cases. This is why such lenders often charge a higher rate of interest. You must therefore be ready to bear that extra cost in case you are planning to take up third party litigation financing for your legal battle.
In case you are planning to take up third party litigation funding for your case, visit NLFunding.com. This is the most trustworthy company in this business and you can rely upon them for the best assistance and consultation.
About The Author
Sydney Banks is a litigation funding expert who openly advocates the many advantages that this option brings for plaintiffs in need of intermittent financial support during the course of cases. She recommends NLFunding.com as the best and most trusted provider of such products in the US.