The offices of public defenders have always been plagued with high workloads and low pay. Defendants who use these attorneys generally do not have the money to hire a private lawyer. Large caseloads and small pay have caused many defendants to state in court that their defense was inadequate.
In response, public defenders argue that those factors played a significant role in how rigorous their defense was. After all, limited time and finances make it difficult to provide a robust defense. Lawsuit funding may provide at least a partial solution to this problem. By funding public defenders, lawsuit finance companies can help alleviate some of the money woes many are facing by advancing money on their late voucher payments.
Public defenders are usually paid by the state for which they work. With governments at all levels going through a tough time, there are going to be even more cuts, and budgets are going to be smaller than usual. Cities and states all over the country are cutting their budgets, which makes it less likely that public defenders will be paid in a timely manner. According to news reports, some offices are even forced to refuse cases due to dismal finances.
Since it is well known that the government is notoriously slow at paying their bills, public defenders can get the money and peace of mind they need to focus on future cases by obtaining lawsuit settlement funding. A legal finance company can purchase these vouchers at a discount and provide immediate capital to the public defender. Typical rates for this type of funding range between 1.5% and 3% per month. It is important to note that voucher factoring is not a loan, but a transaction that involves the purchase of a legal receivable.
Public defenders have the image of being overworked and underpaid. Lawsuit funding may not be able to do anything about their salaries, but having cash on hand to give clients their best can do a lot for their case and overall demeanor. A well-funded system on both sides of the aisle is good for the system, and lawsuit funding, while not able to fix all the problems public defenders face, can be a step in the right direction.
About the Author:
David Smethie is the Deal Origination Manager at RD Legal Funding, LLC, a New Jersey based lawsuit funding company that focuses on post settlement financing. RD Legal's proprietary fee acceleration program converts legal fees associated with settled cases into immediate cash for both attorneys and plaintiffs. The company has been a leader in the legal funding space since 1997.
