Champerty and Maintenance


Instead of being a financially suffering victim of a personal injury call us or apply with us for a pre-settlement cash advance. Personal injury victims often suffer financial difficulties after their injury. They are frequently out of work and have injury-related expenses in addition to their prior expenses. Personal injury victims will often turn to their attorneys for help. Unfortunately, most states have laws prohibiting attorneys from providing financial support to their clients. These laws are based on the common law doctrine of champerty and maintenance.

Champerty is when a person bargains with a party to a lawsuit to obtain a share in the proceeds of the lawsuit. Maintenance is the support or promotion of another person’s lawsuit initiated by a third party for personal gain. Laws against champerty and maintenance keep attorneys from having a conflict of interest regarding their client’s case. If attorneys had invested their own money in their client’s case, the attorneys would be more likely to disregard their client’s wishes in order to protect their investment.

Although attorneys cannot loan money to clients, Pegasus Legal Funding can provide cash advances to personal injury victims until they receive their settlement. The difference is that Pegasus Legal Funding is a neutral third party. Pegasus Legal Funding does not have any affect or control over the case. Instead, Pegasus Legal Funding provides the cash advance and then lets the client and the attorney work to resolve the case. The personal injury victim no longer has to worry about money and the attorney no longer has to worry about ethical violations. Pegasus Legal Funding provides peace of mind for all parties involved.


.:About the author:.

Alexander Khanas is a Principal and co-founder of Pegasus Legal Funding, LLC. Max was an early adopter and identified third-party litigation funding as a mutually beneficial endeavor for both client and funder relationships.

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