Yes, it’s possible to get pre-settlement funding if you have more than one lawsuit. For example, a serious car accident might lead to separate claims. Funding companies typically evaluate each case on its own merits. If one or more of your lawsuits is strong and likely to result in a settlement or award, you may be eligible for funding. Each company has its own guidelines, but the key factor is whether there’s a clear path to recovery in the cases you’re pursuing.
While pre-settlement funding is often referred to as a lawsuit loan, it is actually a cash advance against your expected settlement or jury award. Pre-settlement funding is non-recourse. So, if your case doesn’t resolve favorably, you do not have to repay the funds. The funding company assumes the risk.
Multiple Lawsuits and Pre-Settlement Funding
It’s not unusual for someone to be involved in more than one legal claim at the same time. As noted above, a single event, such as a car accident, may involve multiple defendants. Funding companies generally evaluate each lawsuit independently. For example, a crash may lead to claims against another driver, a vehicle manufacturer, a repair shop, or a commercial employer. Each of these claims may proceed separately — even if they arise from the same accident.
How Responsibility Is Shared Among Defendants
States have different rules for how accident victims can recover money when more than one person is at fault. Some use a system where one party can be held responsible for the full amount, while others limit each party’s responsibility to their share.
Here’s how the two main types of liability work:
- Joint and several liability: The victim can recover the full amount of money from any at-fault party. That person can then try to get reimbursed by the others.
- Several liability only: Each party only has to pay their share of fault. If one party can’t pay, the victim might not get the full amount.
Depending on the state, joint or several liability laws can either strengthen or limit a plaintiff’s chances of securing full compensation, an important factor that funding companies consider when evaluating the recovery potential of a case.
How Pre-Settlement Funding Works
To qualify for pre-settlement funding, you must have an active lawsuit(s) pending and legal representation. When filling out the online application, include the contact information for your lawyer. The funding company requires information from you and your lawyer, including the specifics about your claim and injuries. The funding company reviews and evaluates your case and consults your lawyer to determine how likely it is to succeed.
If it appears your case is strong and you are likely to win a substantial settlement or award, you are usually a candidate for pre-settlement funding. If the application is approved, the money is usually available within 24 hours. Your pre-settlement funding amount is paid back when you receive your settlement or award.
“Our pioneering spirit and commitment to innovation make us a trailblazer in the legal asset industry, especially with plaintiffs involved in complex claims, offering a unique blend of experience, vision, and inclusivity.” – Mustang Litigation Funding
Contact Mustang Funding Today
Contact Mustang Funding today to learn more about pre-settlement funding and whether it is the right option for you. We serve litigants from coast to coast. Learn more from our ultimate guide to pre-settlement funding.
About Mustang Funding
Mustang Funding, founded in 2018 and based in Wayzata, MN, is a litigation finance company dedicated to empowering individuals and law firms nationwide with transparent and innovative financial solutions. With over $170 million funded, 10,000+ checks issued, and more than 3,000 cases financed, Mustang provides plaintiff pre-settlement funding, law firm financing, and commercial funding to meet diverse client needs. Their commitment to transparency, integrity, and expertise sets them apart, offering tailored financial support to plaintiffs, businesses, and legal professionals. By bridging capital gaps and fostering access to justice, Mustang Funding continues to lead the legal asset investment industry with a strategic, inclusive, and forward-thinking approach.
