At Lake, A.P.C. we work closely with plaintiffs and attorneys nationwide involved with sizable and high-profile cases in regards to
satisfying their litigation funding needs.
Non-recourse funding is extremely attractive for many important
reasons:
a) The money advanced does not need to be repaid if the
case is unsuccessful:100% of the risk is with the funding source; if the case is lost neither the plaintiff nor your law firm
owes anything to the investors for the funds advanced.
b) Advances can be made to your law firm or the plaintiff directly:
In cases with a single party plaintiff it is possible to fund the plaintiff, your firm, or both.
c) Advances can be in the tens of millions of dollars:
In many cases non-recourse funding begins at levels as low as $1 million and easily can reach amounts in excess of $20 million.
d) Advances can be provided in one lump sum:
With a loan or line of credit the lenders generally require the law firm to establish a monthly budget. The firm then receives monthly disbursements
from the credit line. On the other hand, the full amount of a non-recourse advance will be given to the firm immediately upon approval.
e) No personal guarantees: Loan programs and lines of credit created
by institutional lenders require the senior partners to sign personal guarantees. No personal guarantees are required for non-recourse funding.
f) No liens against your firm: Loan programs and lines of credit
issued by institutional lenders require liens to be placed against most if not all of the cases in the firm’s matrix. Additionally, most lenders require
the firm’s receivables to be applied to paying down the loan or credit line; often this involves a significant percentage or the entirety of the firm’s assets.
Non-recourse funding does not require liens to be placed against the firm, its principals, or its assets.
g) No monthly fees: A loan program requires monthly payments against the
loan or the money drawn from the credit line. With a non-recourse advance there are no fees until the case reaches a positive result and your law firm is paid.
h) No underwriting costs: Most lenders require the borrower to
pay nonrefundable underwriting costs up front. In complex matters, these costs can be significant and the loan can still be denied. However, non-recourse investors
handle all underwriting costs, saving your firm potentially wasted funds.
i) Underwriting can be finalized in 40 days or less: A loan program or line of credit can take months to
establish. The non-recourse investors we work with make their decisions quickly: funding often occurs in 40 days or less.
If you are interested in obtaining non-recourse funding for cases involving any of the types of claims listed below, please contact us in confidence to discuss the types of non-recourse programs available as well as
the terms associated with those programs:
1) Patent and copyright infringement
2) Trade secrets
3) Intellectual property
4) Securities fraud
5) Class actions
6) Mass torts
7) Legal malpractice
8) Breach of contract
9) Financial distress
10) Financial service companies
11) International arbitration
12) Oil and energy
13) Enforcement of judgments
14) Whistle blowers
15) Other claims in excess of $10 million
