ADVANCE FUNDING IN PERSONAL INJURY CASES & CAR ACCIDENT CASES… SIMPLY A BAD, BAD IDEA!!

Recently we have seen more and more commercials influencing clients  to seek out advance funding for the personal injury/car accident/slip and fall, or other related personal injury case. It is simply a bad idea.  Here is the scenario:

You are driving along, stopped at stop sign, or simply minding your own business when you are hit by another car in a car accident, rear-ended at a stop sign, or slip and fall.  As a result of the event, you sustain personal injuries for which you are now seeking compensation.  In a Florida car accident you most likely will have Personal Injury Protection (PIP) benefits to help with medical bills or lost wages; however it may not be enough.  In a slip and fall, most companies do not have a Medical Payments (MedPay) provision in the policy the pay your medical expenses.  You are uninsured as far as health insurance.  What will you do?  Your bills are piling up!  Your rent is due, the electric bill is due, and expenses keep mounting!  Again in most every Florida car accident there will be at least some PIP benefits to help with lost wages (Though PIP only pays 60% of your lost wages).  If you went to the emergency room after the collision, it is most likely the hospital found a way to bill and use almost all of your PIP benefits (medical bills are only paid at 80% under PIP, and you still must meet your deductible) and did nothing for you but to advise you to come back if you are hurting more.  Whatever will you do…?

Car accident and personal injury lawsuit prefunding companies will come to the rescue … [or NOT].  There are numerous companies out there who will come to your rescue and provide you money before your case has been tried to a jury verdict, settled pre-suit, or settled at mediation.

Let’s call Client #1 Fred.  Fed was injured in a car accident in Orlando, FL.  As a result of the car accident fed could not go back to work.  Fred’s case went to litigation.  During the time the case was in pre-suit, and then litigation, Fred needed help with rent, utilities, etc.  Fred turned to the funding companies and borrowed about $3,500.00. By the time Fred’s case was resolved, Fred had to pay back over $5,400.00.  Almost a $2,000.00 increase from what he received.  The problem:  The $2,000.00 came from Fred’s portion of the claim.  Had Fred not received the funding he would have received at least $2,000.00 more in his pocket from the settlement.  In his case, Fred understood what he was doing, but in the end was not happy that he had to pay out an almost usury amount of interest and fees. 

Now we turn to Client#2.  Client #2 is Sally and she needed money - supposedly to help pay rent and bills.  Sally received the money, used the funds to have her car engine (the car was not involved in the accident) repaired and surgery for her pet.  Sally received $1,000.00.  As of the day she received the money, Sally had to pay back over $1,600.00.  Sally’s lawyer said: “No it is not a good idea, it is not in your best interest,” but Sally when ahead with it anyway.  As her case proceeded Sally’s fees climbed and climbed.  For $1,000.00 received Sally had to pay back over $2,000.00.  An increase of $1,000.00 and once again less money in Sally’s pocket book one the case was resolved.  

Sometimes, you have no choice, sometimes you need help.  When you are involved in a car accident, slip and fall or other personal injury matter, you need help making ends meet. If it truly an emergency and you are facing eviction, it may be reasonable to seek help from a funding company.  In most cases it is not.  Your recovery will be reduced in the end significantly.  The money is deducted from the portion of the recovery to the injured client.   In many cases the client is not happy.

You should speak to an experienced Orlando car accident or Orlando personal injury lawyer before ever considering seeking help from a pre-suit funding company.  Some companies are reasonable, many are not.  Remember they are taking risk that you may never recover money, or recovery may be limited by circumstances you may not be able to control.  Therefore they charge large fees and higher than usual interest.

Read carefully you pre-funding agreement, and think twice before signing on the dotted line.  The thrill of fast cash is soon lost when at the end of the case; you realize you are losing money out of your pocket in the form of high fees and interest rates.  At the Orlando car accident Cressman Law Firm, we rarely recommend clients use pre-suit funding.  Rather, look to family and friends for help – at least they will not charge exorbitant fees and inertest rates to help you out.  

What is Orlando Car Accident Case Worth?

Certainly the most common question we are asked is, "What is my lawsuit worth?"  No attorney can tell you during your initial conference what your lawsuit is worth.  We can offer you some insight, however, into the process:

• The cases you read about in the paper are generally important exceptions to money awards in lawsuits.  If these cases weren't "different" (either very low or very high,) then the media wouldn't be interested in them.

• No two lawsuits are exactly the same.  Just because another person settled for a certain amount or was awarded a certain amount by a jury doesn't mean that you should or can recover the same amount.

• Most people who file lawsuits do not get every penny they want or every penny they deserve.  Since the harm done to you is personal, no amount of money can make it "right" for you.  Nevertheless, it is wise to keep your expectations realistic.

• The "worth" of your case will be determined in one of two ways—either by mediation or trial by a jury.  In other words, the "worth" of your case is the amount you are willing to settle for (in mediation) or the amount that the jury decides that its worth.

• If we enter settlement negotiations or mediation for you, your lawyer will advise you about each offer you receive.  This advice is given based on knowledge of the facts of your case (both for you and against you) and based on the lawyer's knowledge and experience.  Since settlement negotiations and mediation will not occur until much later in your case, when all the facts are known, we will not give you an opinion today on the "worth" of your lawsuit.  Instead, we will advise you of the strength or weakness of the lawsuit.

We hope the above information is helpful to you.  If you have additional questions, please do not hesitate to call us at 407-877-7317, or visit www.cressmanlaw.com

HOW LONG WILL IT TAKE TO RESOLVE MY FLORIDA CAR ACCIDENT CASE

First, I would like to take this opportunity to thank you for allowing us the privilege to represent you against the individuals or companies who made be responsible for the injuries you have sustained.

During the initial course of the investigation, there are many pieces of information which our office will be collecting in the form of accident reports, reports of the incident, together with all applicable medical bills and records, pharmaceutical bills, physical therapy bills, bills with regard to any kind of medical devices or medical equipment you may require as a result of your injuries, as well as any other documentary evidence relating to the damages which you have sustained as a result of the incident.

The order and  progression of the investigation of this potential lawsuit, as well as the eventual filing a lawsuit, should it become necessary, is not a process which can be accomplished in a short period of time if it is to be handled properly.  To best represent you, and, of course, to ensure that you medical condition is stable, it is generally in your best interest not to hurry the process of the litigation.  We, of course, will proceed as quickly and as diligently as possible, always keeping your best interests in mind.

During the course of the investigation, you should not discuss this matter with anyone, except for the office staff or personnel of the Cressman Law Firm.  Always be courteous with any individuals requesting information, and inform them that you have turned over your case to your attorney, and give them our telephone number, name, and ask that they contact our office to discuss your case.

At the beginning of any claim, or eventually any lawsuit, and during the investigative stages, there are many things that we will do without directly contacting you.  For that reason, it maybe some days or even weeks, on occasion, between contacts with our office.  However, if you have any questions, please feel free to contact the office at any time and we will be happy to discuss your case with you.  

I would like to emphasize that each and every question which might occur to you regarding the process of the claim or the filing of the lawsuit or the facts underlying the claim is important to me.  Please do not attempt to decide what is or is not important.  Rather, direct any items to my attention as they occur to you.  Often times you can do that simply by dropping me a note or contacting me by e-mail.  My e-mail address is mark@cressmanlaw.com.  It does not need to be formal, just put down your thoughts briefly and forward them to my office.

PLEASE REMEMBER!!  During the course of presenting your claim or any potential litigation, you should always send us copies of any medical bills which relate to the damage and injuries which you sustained and for which you are receiving medical treatment.  In addition, you should send us copies of any bills of any kind which relate to any damages you have sustained as a result of your injuries.  This includes any bills for having to hire maids, lawn keepers, anyone to drive you to doctor's appointments, cab fare, etc.  We do not need you to call us each and every time you go to the doctor, hospital or other health care provider, but would like to be kept up-to-date on the more important events during the course of your medical care.  The simplest procedure is for you to simply write me a note and provide the information to me.  We have enclosed a Questionnaire which MUST be completed by you immediately.  Please use the enclosed, self-addressed envelope to return the completed Questionnaire.  This information is essential for us to accomplish our job.  If you have any questions in completing the Questionnaire, again, please do not hesitate to contact our office.

It is very important that we be kept advised of your current address and telephone number.  Should you move, immediately notify our office of your new address and telephone number.  Should you plan to be out-of-town for any significant length of time, please call my office and let us know.  You do not need to call the office if you are simply going away for the weekend, but if you are going to be gone for more than three (3) days during the course of the week, please call the office so that we are aware of your travel plans.

Again, I would like to emphasize that we appreciate the opportunity to represent you in this matter.  I hope that you will feel free to call me, or if you have any questions regarding the progress of your case, that you will contact our office so that we may assist you.  Please know that you are invited to schedule an appointment to meet with me personally in the office.  Should you desire to schedule such an appointment, please do not hesitate to contact the office at 407-877-7317.