Civil defense law firms provide legal guidance and services to businesses and individuals with a lot at stake. To best serve their clients, these firms must be able to provide the highest level of service and representation, from initial investigation through potential appeal. The future and reputation of the client and the firm depend on it.
Law firm funding for civil defense firms ensures that resources are available to effectively engage in the process of defending against a civil claim from start to finish. This funding option also allows firms to offer clients more flexible payment terms and a defined, more predictable level of risk.
Law Firm Funding Bridges the Gap in Civil Defense
Insurance companies pool the resources of many to minimize risk and protect businesses and individuals from liability and provide coverage for an unanticipated loss or expense. Similarly, law firm funding can help finance larger civil defense cases when financial resources are otherwise inadequate. Common scenarios where law firm funding can help include these:
- Clients lack or have inadequate insurance coverage.
- Civil defense clients are self-insured civil defense clients.
- Existing payment or other income stream is delayed or slow.
Even when resources should be available through errors and omissions (E&O) insurance, coverage disputes or slow payments can make financing larger cases difficult. Law firm funding can bridge that gap.
Law firm funding uses the same model as insurance: spreading risk over multiple investments to create a higher level of security for each individual entity. This approach minimizes and shifts risk, benefiting law firm and client alike.
How Law Firm Funding Works in Civil Defense
Law firm funding provides working capital that can be used for the administration of a specific case or the general operations of the firm. This infusion of capital allows firms to offer clients more predictable payment arrangements based on the assessment and establishment of the standard for a favorable outcome.
When the case is settled or decided, any awards that exceed the predefined threshold for success are indemnified by the funder. This stabilizes the potential cost of the suit and, combined with an additional stream of income, allows firms to offer lower, fixed rates throughout the legal process, sometimes with a fee upon successful conclusion.
Financial Support for Law Firms Defending a Variety of Civil Actions
Civil defense litigators handle a wide assortment of legal disputes. Attorneys and paralegals in this field must be knowledgeable of all stages of the litigation process, including investigation, pleading, discovery, pretrial hearings and proceedings, settlement or trial, and appeal. Some of the legal issues that result in civil proceeding include the following:
- Antitrust issues;
- Building and construction liability;
- Environmental issues;
- Intellectual property disputes;
- Labor and employment matters, including workers’ compensation;
- Medical malpractice claims;
- Personal injury cases;
- Product liability, exposure, and toxic torts; and
- Real estate or property matters.
While the majority of civil lawsuits result in pretrial settlement, studies have shown that result might not always be in the client’s best interest. When pressing a matter to trial is the best option, law firm funding relieves the strain of the unknown from the equation and provides peace of mind for both attorney and client.
Specialized Skills are Needed to Meet the Challenges of Civil Litigation
Attorneys who defend businesses and individuals in civil lawsuits must have a deep knowledge of the law. The work necessitates the support of a law firm, paralegals, and other staff who understand the challenges of the work and the resources required to do it well.
A civil law attorney also requires excellent analytical skills and an advanced capacity for reasoning, paired with the ability to convey important points orally and in writing. Litigators must have strong negotiation and interpersonal skills for managing critical relationships with adversaries and clients.
Long hours and high levels of conflict can combine with the stress of potential losses to create a crushing weight on a civil attorney’s shoulders. Law firms need to be able to compensate attorneys and support staff well and offer attractive benefits to retain top talent.
How Law Firm Funding Benefits Civil Defense Firms
Civil defense firms that take advantage of law firm funding are able to invest those funds in the growth and development of the firm’s business, as well as the support of attorneys and legal cases. Stronger firms are better equipped to represent clients, and successful outcomes, in turn, foster further business growth.
The underwriting process for law firm funding provides valuable insights and helps firms and attorneys determine the likely costs of a case or cases. This enables firms to offer clients who are facing great monetary and reputational losses the best possible service and to defend the case based on its merits, not on shared fears of potential damages.
Pravati Capital has offered law firm funding for more than ten years. Our underwriters and staff are experienced in finance and law, and we’d be happy to talk to your law firm about the benefits of law firm funding for civil defense firms. Complete our online contact form or call us at 844-772-8284 to learn more.