Universal Protection Service Lawsuit
Why Is A Universal Protection Service Possible?
There is one service that can make an enormous difference in the way that you handle your lawsuit’s: A Universal Protection Service lawsuit funding company. This type of litigation funding service works to provide attorneys with the resources that they need to gain a judgment in a personal injury lawsuit. Such funding companies purchase judgments, or “moneys,” in cases where the plaintiff’s legal fees may be unable to cover those costs. (This is why such funding is sometimes referred to as a “mulligand fee.”) When you are preparing for a court case, having a steady flow of monies to fund your legal defense is absolutely critical.
Universal Protection Service Lawsuit
You may wonder what such a lawsuit funding company can do for you. In fact, any experienced litigant will tell you that their primary role in any legal proceeding is to seek monies in order to offset those costs associated with preparing the case. Thus, it is vitally important for you to seek lawsuit funding as soon as possible following the filing of your complaint. Do not wait until later when you may have far greater legal costs.
What does a universal protection service do?
They obtain cash from a judgment debtor and disburse it to the attorney. (A “Judgment debtor” is someone who is liable in a lawsuit.) In turn, the attorney obtains cash from the judgment debtor and disburses it to the party that filed the lawsuit. (In other words, the provider does not pay the attorney fees in advance.)
Such a lawsuit funding transaction is quite complex.
First, there is the “debtor-bank” process. Herein, the financial institution that provides lawsuit loans and settlement loans collects the legal fees of the parties’ attorneys. Then, the funds are dispersed according to the terms of each contract. While this may seem to create a “hassle free” transaction for both sides, this is not always the case.
In addition, there are many drawbacks to this lawsuit finance arrangement. Some plaintiffs do not have the time, patience or resources to devote to a complex case such as a personal injury claim. Others may be unfamiliar with legal procedures, the laws governing personal injury claims and the applicable terminology used in such cases. Still others may lack the capital to hire a skilled attorney, or the money to pay for pre-trial depositions, expert witnesses and other necessities of a case. And yet others may lack the monetary resources to undergo months-long litigation in the initial phases of their case.
Such a lawsuit finance arrangement may also result in the partial eradication of attorney fees, thereby substantially reducing the net proceeds of the lawsuit.
This may seem ironic, but many plaintiffs may be unfamiliar with basic contractual principles that govern the transfer of funds. Worse still, they may not fully understand the inherent limitations on such funds’ use. It is important for plaintiffs to retain an attorney who can explain such limitations. It is also advisable for plaintiffs to obtain the services of a competent lawsuit funding broker, who can review various options and then advise their clients on the most feasible option.
The existence of a universal protection service has been associated with various abuses by companies that seek to utilize this legal shield to escape liability.
For instance, one well-known manufacturer of a popular plastic injection product experienced such a problem in 2021. After a class action suit was filed in federal court on behalf of a class of plaintiffs who claimed to have experienced injuries as a result of VOC injection, the manufacturer’s insurer agreed to provide millions of dollars in universal protection services. As is often the case in corporate America, the company chose to diminish the value of its liability insurance to avoid having to pay thousands of dollars in lawsuits brought against it.
As a result of such litigation finance, the company was able to avoid having to pay potentially millions of dollars in claims and settlements. Such abuse of the settlement process has serious repercussions for the entire lawsuit funding industry. Lawsuit financing companies have been forced to modify their terms and conditions to limit the types of liabilities that are protected through universal protection services. In the wake of these events, many plaintiffs who were improperly served or who were not provided with proper notice regarding their right to a universal lawsuit settlement have requested that their damages be awarded retroactively. Such requests are currently being considered by federal district courts throughout the country.