Is it harder to settle a case with a non-recourse advance in place?
There is no evidence of that. Most companies fund less than 10% of the estimated net value of the case. They do this for a variety of reasons. One is the obvious risk that goes with the funding of a case. Another is so that the money is for life’s necessities only and not for frivolous spending. The third reason is that funding only up to a maximum of 10% of the anticipated net value of the case assures that the investment does not interfere with the lawyer’s ability to obtain a fair and just settlement. ALFA Members have the role of providing their clients with the time to allow their attorneys to properly handle their cases. All members have embraced this 10% rule to allow attorneys the time to do just that. Members do not get in their way nor do they have any say in the strategy or the ultimate outcome of the cases.
