Lawsuit Futures

TitleLawsuit Futures
Publication TypeCase Study
Year of Publication2017
AuthorsSkipper, RB, Connelly, P, Althaus, RA, Malm, HM
PublisherAssociation for Practical and Professional Ethics
AbstractLitigation financing is a relatively new practice in the United States. When a person or small business wants to bring a lawsuit against a large corporation, very often the defendant can afford top-notch lawyers and long delays while the case winds its way through the courts, but the plaintiff can’t afford the same. Litigation finance companies change this dynamic by paying all or some of the costs of the plaintiff’s suit. If the plaintiff wins, the finance company recovers the total amount of their investment plus a percentage of any judgment or settlement. If the plaintiff loses, the finance company gets nothing. The financing is paid to the plaintiff as a lump sum up front, and the plaintiff does not need to provide an accounting. Thus, the money may be used for anything: not just the legal costs, but also such things as unexpected medical costs, keeping a child in college, or anything the plaintiff might have to sacrifice for the sake of keeping a multi- year lawsuit alive. However, the introduction of a third-party in lawsuits can complicate things, as investors want to recover their investment plus interest.
NotesCase from the 2017 International Ethics Bowl on February 26, 2017 in Dallas Texas This work is licensed under the Creative Commons Attribution-NonCommercialNoDerivatives 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc- nd/4.0/. © 2016 Robert Skipper, Peggy Connolly, RuthAnn Althaus, Robert Currie, and Heidi Malm.
URLhttp://ethics.iit.edu/eelibrary/LawsuitFutures.pdf

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