Sometimes even the rich and famous need a little help to fight their lawsuits. Noel Edmonds, the host of the UK version of Deal or No Deal, recently filed suit against Lloyds Banking Group. The lawsuit alleges that the Reading branch of HBOS, a wholly owned subsidiary of Lloyds, committed fraud a decade ago, which resulted in the collapse of Edmonds' entertainment firm, Unique Group. His is purportedly seeking $77.4 million worth of punitive damages as compensation for his financial losses and for the humiliation that he suffered as a result of the alleged fraud.
While lawsuits between celebrities and big-name companies are relatively common, what makes Edmond's situation noteworthy is that he is reported to have received a $1.9 million pre-settlement cash advance from a company that provides lawsuit funding in cases involving multi-billion dollar companies. To have a chance against a company that can afford to hire a small army of attorneys, a plaintiff typically needs significant wealth. For those who lack the resources required to wage war in court, a pre-settlement lawsuit loan is usually a necessity.
Here's a dirty little secret about the legal arena: Attorneys of big companies don't have to play to win because time is on their side. When a plaintiff files a lawsuit against a company like Lloyds Banking Group, the company hires a team of attorneys to bury the plaintiff's attorney under a pile of paperwork. In order to keep up, an attorney might have to bring in other colleagues from his or her firm, which can easily triple or quadruple the number of billable hours. Those extra fees can break the bank for many plaintiffs.
Attorneys for big companies also file motion after motion, sometimes for seemingly irrational reasons, all with the express intent of driving up plaintiffs' legal costs. In many cases, the plaintiff runs out of money before the case is resolved in court, and he or she is forced to the negotiating table, where settlements are typically a small fraction of the total sum sought in the suit. In such cases, the lawsuit usually ends when the plaintiff accepts the big company's peace offering. Besides paying significantly less than they might otherwise pay if the case went to trial, the company can also deny any wrongdoing, claiming that they paid the settlement simply so they could put the controversy behind them.
Although Edmonds has accumulated a sizable fortune in his decades as a TV host and an executive producer, even he would have a difficult time pursuing a case to its end without a lawsuit settlement loan. In the battle of multi-millionaire versus multi-billion dollar corporation, the big company has the advantage of a bigger bank account.
The chief advantage of a settlement advance loan is that it takes away the big company's chief advantage. A lawsuit can only be drawn out for so long, and if plaintiffs have the resources to see cases through to the end, they often emerge victorious. Juries hate to see giant corporations trampling on the rights of fellow citizens, and they will often award plaintiffs astronomically high judgments to punish wrongdoing. For example, in 2002, a California jury awarded $28 billion in punitive damages against Philip Morris, the tobacco company that made countless billions by selling cigarettes to people who later died from smoking-related diseases. So when plaintiffs have financial backing in the form of pre-settlement lawsuit loans, their chances of winning big against nefarious corporations increase dramatically.
Not many people who bring suit against someone who has caused them pain and suffering can expect to win such massive judgments, but for many people, a lawsuit settlement loan is the only way to secure the money they need to recover from their injuries and to avoid a lifetime of agony. At Argenta Legal Funding, our top priority is helping our customers get the money they deserve, which is why we have low pre-settlement funding interest rates and an easy application process.
A pre-settlement funding loan is a "non-recourse" cash advance, which means that we don't ask for collateral and you don't owe us a cent if you lose your case. You also get to keep any unspent money from the pre-settlement cash advance. Because you only pay if you win, there is absolutely no risk to you.
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A legal funding is not a loan because you only pay us back when you win your case. That's right – there is no risk to you because if you lose your case you do not pay us back and you keep the cash.
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