Determining the amount of your lawsuit loan in the state of NY involves a careful analysis of several key aspects. At its core, litigation financing companies evaluate the liability, damages, and overall strength of your pending litigation to determine the likelihood of a successful outcome. The higher the value of your case, the more you may qualify for in terms of lawsuit funding in NY.
Caps on Damages
Since New York has no legal caps on either economic or non-economic damages in personal injury cases, you have the opportunity to fully recover compensation for all your losses, including past and future expenses, without any state-imposed limitations on award amounts. However, you can only get punitive damages if it is reasonable.
- Economic damages, (medical bills, lost wages, property damage, etc.) We thoroughly review medical records, existing bills, property damage to estimate how much funding we can make available to you.
- Non-economic damages, (pain and suffering, physical impairment.) More severe and long-term injuries often lead to larger advances due to the increase in the potential settlement.
- Punitive damages (intended to punish the defendant for egregious behavior). Punitive damages are rarely considered by pre-settlement loan companies due to the high risk it has on being overturned in New York.
Statute of Limitations in NY
Injury claims in NY generally have a statute of limitations of 1 to 5 years from the date of the injury or wrong-doing.
When considering lawsuit financing, companies will assess the amount of time that has passed since the date of the injury or loss. If the statute of limitations is nearing its end and the lawsuit has not yet been filed, this may affect the lender’s willingness to fund your case. On the other hand, New York cases that have been filed for a longer period or are close to settling have higher chances of being approved for larger funding amounts.
Here is a general overview of the statute of limitations:
Insurance Regulations and Minimum Liability Coverage
New York is a “no-fault” state for automobile accidents, meaning that, regardless of who’s at fault, injured parties turn to their own insurance policies for compensation first. This principle can influence the amount of money awarded in traffic accident cases and, consequently, the funding possibility for car accident lawsuit loans.
In addition, New York law mandates that vehicle owners carry the following liability insurance coverage:
- A minimum coverage of $25,000 is required for personal injury to a single individual in an accident.
- In the event of a fatality, the coverage requirement increases to $50,000 for each person.
- For accidents involving multiple individuals, the minimum coverage for injuries is set at $50,000.
- If an accident results in the deaths of two or more people, the required coverage is $100,000.
- Property damage liability is set at a minimum of $10,000 per accident.
Legal lending companies highly consider the insurance policy limits of the responsible party. Higher limits suggest a larger settlement, which can increase the size of the loan you qualify for.
Comparative Negligence in New York State
New York follows the principle of “pure comparative negligence.” That means if you’re partly to blame for your injuries, the settlement money you get will be reduced by your percentage of fault. For example, if you’re 80% responsible for an accident, you can still get compensation from the other party who is 20% responsible. But your compensation will be reduced by 80%.
Why does this matter for New York lawsuit funding companies? Because when you’re partly at fault, it affects how much money you get in a settlement. The less your fault, the more money you’ll get.
Liens and Subrogation Rights
According to New York law, specific organizations such as health insurers or Medicaid have the right to put liens on personal injury settlements or judgments in order to recoup the funds they have spent on the plaintiff’s healthcare. These liens are taken into account by legal funding companies as they can decrease the final amount received by the plaintiff from the recovery.
Case Precedents
In New York, past court decisions serve as examples for handling similar lawsuits in the future. If your case has similar facts and outcomes to a previous case, the lender may use that case as a guide to decide how much of a loan to give you for your lawsuit.