Dealing with the financial strain of a lawsuit? Pre-settlement funding might be the solution you need. However, given the non-recourse nature of this funding—meaning you only repay if you win—lawsuit loan companies favor cases with strong potential for success. Here’s a closer look at the 10 types of lawsuits that are most likely to be funded.

What Types of Cases Qualify for Pre-Settlement Funding?

Before diving into the specifics of each case, your attorney must work with the lender and clearly demonstrate both liability and damages through comprehensive and credible evidence. Failure to do so may result in a denial of your request.

1. Personal Injury Lawsuits

Catastrophic Injuries

Personal injury cases are common and diverse, making them a big portion of legal funding requests. Lenders prefer legitimate lawsuits involving catastrophic injuries, such as traumatic brain injuries, spinal cord injuries, severe burns, and amputations. These cases often result in large compensation amounts if the evidence is strong and the defendant is well-insured. High returns make these lawsuits top funding choices.

Motor Vehicle Accidents

Car accidents are one of the most common types of personal injury lawsuits. Due to their high frequency, lending companies often fund them. Before agreeing to provide car accident funding, your lender will require your attorney to submit:

Strong Evidence of Fault. Police reports indicating who was cited, traffic camera footage showing the accident, photographic evidence of the accident scene (if available), witness statements corroborating your account, and accident reconstruction reports.
Damages Evidence. Medical records detailing injuries, such as whiplash, broken bones, or spinal injuries. Treatments, bills for medical expenses, loss of income due to inability to work, might also be required.
Insurance. Defendant’s auto liability insurance, or your uninsured/underinsured motorist coverage. Some states have “no-fault” insurance systems where personal injury protection (PIP) covers medical expenses regardless of fault.

Keep an eye out for potential issues like inconsistent witness accounts, as they can delay or reduce funding.

2. Third-Party Workplace Injuries

While third-party claims are among the most complicated, lawsuit loan companies often prioritize them due to the precense clear negligence, and serious and sometimes fatal injuries. Despite long trials and numerous depositions, these cases frequently result in substantial settlements.

To secure legal funding for a third party claim, your attorney will be expected to present the lender with:

Strong Evidence of Fault. Incident reports detailing the specifics on the date, time, location, and circumstances of the accident, records of safety violations by a third party, OSHA reports, contracts, maintenance logs, and witness statements.

Damages Evidence. Medical records documenting your injuries such as crush injuries, electrocution, or falls from heights, combined with the costs for rehabilitation, surgeries, and lost wages.
Insurance. General liability insurance of third-party, employer’s liability insurance, including coverage limits, and any claims filed from a subcontractor’s faulty equipment.

If you want to enhance your application, include additional supporting documents like recent testimonies from coworkers.

3. Wrongful Death Litigation

Legal funding companies often favor providing support for families involved in wrongful death litigation due to the devastating effects on the survivors, emotional distress claims, and the potential for high settlements. These tragic cases often settle for large sums as the stakes are high for both sides.

To borrow money from your pending case, your attorney will need to provide the lender with:

Strong Evidence of Fault. The death certificate, autopsy reports, investigations, and evidence showing how the defendant’s actions caused your loved one’s tragedy (e.g., product or safety defect reports).
Damages Evidence. Funeral and burial expenses, documentation of lost income your loved one would have provided, and statements on loss of companionship and medical expenses incurred prior to your loss.
Insurance. These vary depending on the incident (e.g., auto liability, general liability, medical malpractice insurance).

Keep in mind that you don’t have to disclose all personal details of your case when applying for funding. Reputable companies understand that you are going through a painful time, and will communicate with your attorney directly to obtain what’s required.

4. Wrongful Imprisonment Claims

Wrongful imprisonment lawsuits are very strong candidates for pre-settlement funding due to the devastating loss of liberty, extreme emotional trauma, clear governmental accountability, overwhelming public outrage, and extremely large settlements.

Lenders typically require the following information from attorneys before approving funding:

Strong Liability Evidence. Court documents showing wrongful actions leading to conviction; witness recantations, arrest records, exoneration evidence (such as DNA evidence); court orders overturning your conviction; evidence of prosecutorial misconduct, legal errors, or other violations of your civil rights.
Damages Evidence. Emotional, financial, and social impacts, such as lost wages, emotional trauma, disruption to family life, psychological treatment costs, and loss of reputation.
Insurance: Government liability insurance.

To help your cause, prepare a detailed account of the wrongful imprisonment’s effects on your life. Reputable funding providers are willing to listen to your story, empathize with your situation, and give you the priority you deserve.

5. Medical Malpractice

Legal funding companies often give priority to medical malpractice claims due to the possibility for high damages from misdiagnosis, failure to treat, botched surgeries, or loss of life. These cases also often involve medical negligence, and sometimes, punitive damages.

To prevent frivolous claims, lenders generally require medical expert testimony as a preliminary evaluation. Like with any case, your attorney will need to give the funding company:

Strong Liability Evidence. Medical records showing deviations from standard care, second opinions, diagnostic reports and hospital records that demonstrate the malpractice.
Damages Evidence. Future medical care costs, documentation of income loss, and any permanent disabilities resulting from the malpractice.
Other Records. Informed consent forms, the medical malpractice complaint, medical history.
Insurance. Medical malpractice insurance.

6. Nursing Home Negligence

Another preferred case for lenders is nursing home neglect lawsuits, as they involve vulnerable victims, clear breaches of duty, and systemic issues that lead to larger compensatory damages. To approve these cases, loan companies require evidence demonstrating the harm and the nursing home’s responsibility, such as:

Strong Liability Evidence. Inspection reports, records of staff training deficiencies, incident reports, security camera footage, statements from those who witnessed the neglect or abuse, and medical records showing neglect or abuse.
Damages Evidence. Documentation showing the injuries or health issues resulting from the neglect or abuse, such as bedsores, falls, or malnutrition and dehydration, along with treatments provided. Costs for additional care or relocation to another facility might also be necessary.
Correspondence. Any letters, emails, or other correspondence between you, your family, or other residents, and the nursing home management regarding concerns or complaints about the care provided.
Insurance. Professional liability insurance (covers negligence in providing professional services); general liability insurance (covers general incidents on the property).

7. Slip and Fall Accidents

Proving slip and fall cases often require absolute clear evidence that the property owner was at fault, which can sometimes be difficult to establish. This can make getting pre-settlement funding pretty challenging. But lenders might still fund these lawsuits if there’s obvious fault, serious injuries, and strong documentation, like:

Strong Fault Evidence. Incident reports from the location of the fall, surveillance footage, photo evidence (e.g., wet floors, uneven surfaces) that the property owner’s negligence was the direct cause of your serious injuries. Your lender might also ask for maintenance logs showing negligence, and witness statements.
Damages Evidence. Medical records detailing the injuries sustained from your fall, such as broken bones, head, or soft tissue injuries, the expected outcome, and post-op reports.
Insurance. Property owner’s general liability insurance, premises liability insurance.

To boost your chances of approval, provide a thorough narrative of how the fall happened, and the immediate aftermath, when you apply.

8. Mass Tort Cases

Mass tort cases, which involve many plaintiffs against a few defendants, such as those for defective products, environmental disasters, or pharmaceuticals, are favorable for settlement advance companies. These cases benefit from economies of scale, allowing companies to invest in numerous claims simultaneously.

To strengthen your application, have your attorney provide the following:

Strong Liability Evidence. Consistent evidence across multiple cases, statements from multiple plaintiffs detailing their injuries and experiences, reports of the defect or harmful effect associated with a product; epidemiological studies, documents from the defendant company showing knowledge of the defect or harm, and expert testimonies.
Regulatory Findings. Reports from regulatory agencies on the widespread harm caused by the product or substance.
Significant Damages Evidence. Medical records from multiple plaintiffs, evidence of the collective impact on the community, economic loss, and long-term illness or injury.
Scientific Studies. Research studies linking the product or substance to the injuries claimed.
Internal Company Records. Documents from the defendant company showing knowledge of the defect or harm.
Insurance. Product liability insurance, general liability insurance of the defendant entities

9. Individual Product Liability Claims

Product liability cases present unique challenges that make them less easily fundable. Nonetheless, certain considerations, like strong proof of product failure, and large compensation and punitive damages estimates, can increase their attractiveness to legal funding companies.

To improve your chances of getting approved, your lawyer will be asked to provide:

Strong Liability Evidence. Product defect reports, expert testimony showing the defect and harm, recall notices, and incident reports involving the product. Depending on the lender, physical evidence of the defective product may be a requisite.
Significant Damages Evidence. Technical reports from experts on how the product failed and caused harm; costs for repair or replacement of damaged product, and medical records showing lasting health effects.
Other. Proof of purchase showing you bought the product or detailed records of any communications with the manufacturer or seller regarding the defect or your injuries.
Insurance. Product liability insurance, manufacturer’s liability insurance.

Keep in mind that incomplete records in product liability, such as the lack of evidence in proving that the product was defective at the time of purchase, can result in funding denial.

10. Settled Cases

Settled cases, where the parties have agreed to a resolution before going to trial, are often attractive for legal funding companies because they pose less risk. With liability and damages already determined, there’s a higher likelihood of repayment.

Yet, issues can still arise post-settlement, such as delays in receiving funds, disputes over terms, or even appeals, which can complicate and delay the finalization of the settlement. In order for the loan company to consider funding your case, your attorney must provide the settlement agreement.

Additionally, they may also require a payment schedule, your attorney’s confirmation, lien information, disbursement instructions, insurance information, and a breakdown of damages.

Which Cases Are Less Likely to Get Qualified for Pre-Settlement Funding?

Employment Disputes

Cases involving wage and hour violations, discrimination, or wrongful termination are generally less fundable due to unpredictable settlement amounts that can change based on negotiations and interpretations of employment laws in each state.

Workers’ Compensation

Workers’ compensation funding involves placing a lien on the future settlement of the claim. However, in most states, these settlements are paid directly to the injured worker, not through an attorney, making it difficult to ecover the money. This increases the risk for funding companies, so pre-settlement advances for workers’ compensation is available in select states.

Class-Action Lawsuits

Class action lawsuits are generally not favored by lawsuit loan companies because they are highly unpredictable. Even if a class is certified, there is no guarantee of a favorable settlement or judgment. The complex processes involved—class certification, discovery, trial, and many times, appeals—combined with the distribution on a pro-rata basis, regulatory risks, dilution of claims, and limited control over class actions make them less appealing for funding companies.

Commercial Litigation

Commercial litigation involves legal disputes between businesses or between a business and an individual. These cases are less suited for pre-settlement funding due to the uncertain nature of business solvency, extensive discovery processes, and the high possibility of numerous motions and appeals. The varied interpretation of contracts can also lead to unanticipated outcomes.

Home Insurance Claims

Home insurance claims, involving disputes over property damage or loss, are not eligible for legal funding. These cases often hinge on policy interpretations and negotiations with insurance companies, which can be time-consuming and contentious. Settlement amounts can vary greatly and are usually lower compared to personal injury or mass tort cases, adding layers of risk.

ADA Claims

Funding ADA claims is extremely risky for legal funding companies due to the potential for exploitation and abuse by serial litigants in these cases. The judicial system’s increasing scrutiny of these claims makes it impossible to determine the legitimacy of the cases, which in turn, affects the reliability of funding them.

The Takeaway

Knowing which types of cases are prioritized in pre-settlement funding helps you access the financial support you need. Personal injury cases, wrongful death litigation, third-party claims, wrongful imprisonment and nursing home negligence often top the list because of their potential for settlements and clear liability.

On the other hand, cases like employment disputes, class-action lawsuits, commercial litigation, and home insurance claims tend to be less favored due to their unpredictability and higher risks.

Wondering how to get through this tricky process successfully? Baker Street Funding specializes in helping plaintiffs like you obtain the financial support you deserve. With our fast approval process, competitive rates, and personalized guidance, we’ll be with you every step of the way, providing the resources you need to focus on healing and moving forward.