In our last article, we discussed several factors that must be satisfied when pursuing settlement loans. Our principal focus was on the “reasonable person” standard and the “duty” the defendant owed to the plaintiff. Additionally, we discussed ways in which determinations are made with respect to the duties the defendant may owe to the plaintiff.
However, when pursuing either lawsuit funding or lawsuit loans, it is absolutely essential that damages be clearly established. In this particular article, we will discuss elements required to establish damages, as well as additional features that will be required when pursuing pre-settlement loans.
It is quite interesting to observe how frequently those who submit applications in an effort to obtain either a lawsuit loan or lawsuit funding fail to clearly identify the damages on which that claim is predicated. Unfortunately, the plaintiff has failed to understand one of the most critical elements in attaining litigation funding when they fail to identify those damages. If there are no identifiable damages, there will be no lawsuit settlement loan. Therefore, in addition to establishing that the defendant owed the plaintiff a duty and that the defendant failed to act in a manner consistent with that required by “reasonable person,” the plaintiff has no claim and will be unable to obtain settlement funding unless they can clearly establish the fact that they sustained damages as a result of defendant’s actions.
It is quite reasonable to ask, “If damages are so important, how do I determine what damages I’ve sustained? Additionally, how do I go about assessing the economic loss of those damages?” The damages may come in numerous forms. However, some of the more frequent forms of damages that serve as the basis of “negligence” actions are injury sustained as a result of a car wreck, injuries sustained as a result of discriminatory practices (e.g., employment discrimination), losses resulting from a breach of contract, losses resulting from a failure to maintain a safe and habitable environment (e.g., premises liability), injury sustained as a result of a dog bite, and wrongful termination of employment.
Assuming that the plaintiff has established that they did suffer damages, what are the actual damages that may be submitted to demonstrate the economic loss in question? A few examples of damages and economic losses resulting from said damages would be things such as medical expenses, vehicular repairs, loss of consortium, emotional distress, and loss of opportunity. It is essential that the plaintiff realize that in order to prevail in the underlying lawsuit and to obtain either a lawsuit loan or lawsuit funding they must clearly establish both the damages sustained and a reasonable estimate of economic loss resulting from the defendant’s actions.
Let’s take a look for a moment of medical expenses. Some factors that may need to be taken into consideration are fees related to emergency medical personnel called to the scene. Additionally, there may be expenses relating to having an ambulance arrive at the scene and transport the plaintiff to either an emergency room or a medical facility. Once admitted to an emergency room, there’ll be separate expenses related to not only be emergency room visit, but the emergency room physicians as well. If the plaintiff is admitted to the hospital, there will be obvious expenses related to that hospital stay. Additionally, if the patient is admitted for observation in an outpatient medical facility, such expenses must also be taken into consideration. If surgery is necessary, the plaintiff will have not only the fees related to the surgery, but also fees related to anesthesiology, surgical-equipment/supplies, post-op rehab, etc. Each and every one of these expenses must be carefully identified and reported if the plaintiff wishes to be compensated for those damages.
For those plaintiffs who seek pre-settlement loans, it is essential that they clearly establish damages sustained. All damages sustained should be carefully considered. Furthermore, it will be essential for the plaintiff to carefully calculate the value of each one of those damages. It will be necessary for the plaintiff to translate the damages sustained into an economic loss that either the Court or jury may appreciate. Remember, if the plaintiff fails to identify damages prior to settling his/her claim, the plaintiff will be forever barred from being able to receive compensation for those damages.
In almost all cases, when the claim is settled, the plaintiff will be required to sign a “hold-harmless” agreement, absolving the defendant from all future harm. Underwriters’ determinations regarding settlement loans are contingent on the assessed-value of the claim that the plaintiff has filed. The ability to obtain either a lawsuit loan or lawsuit funding will not be contingent on the perceived inherent value of the claim. Rather, litigation funding must be based on damages the plaintiff has clearly established and claimed in the suit against the defendant.
Do you think a lawsuit settlement loan is right for you? Would you like to learn more about lawsuit funding? Please visit us today and you may apply online for lawsuit funding and learn more about the benefits of litigation funding.