Helping Plaintiffs Gain Access to Justice through Crowdfunding
Imagine you we were badly injured in an accident that left you paralyzed against a Fortune 500 company. Your medical bills are continuing to grow and you haven’t been able to work since the accident. You have no one else to depend on for income. You had your case evaluated by an attorney and you are fairly certain that your damages are well over $700,000, potentially a few million. Yet there’s one small problem; your attorney has told you that your case could cost you at least $200,000 in legal fees, not including additional legal expenses, cost of living and inability to work due to your current disability that was created. Your attorney won’t work on a contingency basis, meaning they aren’t going to front the costs, and you can’t take out a loan because you don’t have enough leverage. What do you do?
Naturally, you would think you’re out of luck. In despair over the thought that you’re likely going to be stuck in a case where the defendants have funds to out “lawyer” you; seeking loans and searching for a law firm to take your case on a contingency fee or as a pro bono case ( which is unlikely). Now you have the opportunity to finance the litigation and your lawsuit through crowdfunding.
Access to justice is a major barrier in both civil and criminal trials. According to the Department of Justice, we have a legal system that is “inadequate”. The Office for Access to Justice states as its mission that it was established specifically to address the access-to-justice crisis and to help the justice system efficiently deliver outcomes that are fair and accessible to all, irrespective of wealth and status”. With the inability for Plaintiff’s with true meritorious claims to recover for past and future damage, means that many people are left hopeless.
Crowdfunding litigation (or litigation financing/funding) has become increasingly popular. Litigation financing allows investors the ability to invest in a legal cause of action. Just like institutional grade assets, investors are able to invest in lawsuits with potential for a high rate of return on the investment. How so? Well, just like any other investment an investor partakes in a portion of the amount that the Plaintiff needs to pursue the case. In return, based on the total judgment award, the investor receives a portion of the judgment for the initial investments into the lawsuit. Without the investor helping to fund the lawsuit, the lawsuit would not have gotten to the judgment stage
From the investor’s view, you’d have the ability to invest in justice — giving the plaintiff their “day in court”, that they otherwise would not have had. Sharing in the risk of the possibility of judgment means that as an investor you share in a portion of the total judgment award. Investors should feel good— you have the ability to further public policy and promote access to justice. With capital to work with, Plaintiff’s can now bring forth their lawsuits in the pursuit of justice. This allows them the ability to engage with the legal system when they otherwise wouldn’t have had such an opportunity.
Investing in litigation is risky, just as any other investment would be. As an investor it’s important to know that each case is properly vetted to ensure that only meritorious claims are pursued. Investors should also be aware of the process of review of every lawsuit. This way you know whether or not the frivolous or fraudulent cases are set aside and only those that have passed all the tests have the ability to receive funding from investors. Thereby ensuring that not only are your funds that you have invested are getting put towards a good cause, but also increasing the likelihood of a return on your investment. At EquityRoots we go above and beyond for our clients to ensure our vetting process yields meritorious claims. For our clients, we provide lawsuit and litigation financing to those in need of assistance with their legal expenses. For our investors, we ensure that we have properly vetted each case, just as we do with any other investment opportunities we offer.
Litigation Financing and crowdfunding litigation allows the plaintiffs an opportunity they otherwise wouldn’t have had, with the investor reaping a benefit alongside the plaintiff. After all, there can be no justice without adequate access to justice.
For more information about financing your lawsuit or investing in a lawsuit visit us at http://signup.equityroots.com.