http:\/\/www.nytimes.com\/2010\/11\/15\/business\/15lawsuit.html?_r=1&hp<\/a><\/p>\r\nIn its lengthy Page One story Monday The Times outlined the pros and cons of investors paying for the costly experts and research necessary to litigate medical malpractice and other types of lawsuits. The story, by the way, was funded by the Center for Public Integrity.\u00a0<\/p>\r\n
The benefit for plaintiffs is that the investment from outside parties is allowing people who may not have had the resources to sue, despite the merits of their cases, their day in court.\u00a0Less litigation leads to less justice, as one person told The Times.<\/p>\r\n
But there are a lot of \u00a0downsides in this kind of money-lending. By lending money,\u00a0investors can\u00a0control or even initiate a suit, or get access to confidential information. Lawyers are not even bound to tell their\u00a0clients that they have borrowed money to proceed with the litigation. The interest rates on these\u00a0types of loans are also high, more than 15 percent, according to The Times.<\/p>\r\n
As an example of how\u00a0lending works, the newspaper cited\u00a0a case in which New York lender Ardec Funding forked oover $45,000 this summer to a Manhattan attorney\u00a0who was representing parents with a baby who sustained brain damage at birth.<\/p>\r\n
The attorney retained two doctors, a physical therapist and an economist to appear at the trial. A jury directed\u00a0the delivering doctor and hospital to pay a $510,000 award, The Times reported.<\/p>\r\n
“Ardec is collecting interest at an annual rate of 24 percent, or $900 a month, until the award is paid,” The Times said.\u00a0<\/p>\r\n
The detailed story, headlined “Putting Money on Lawsuits, Investors Share in the Payouts,” raises interesting arguments on both sides of the issue.\u00a0<\/p>\r\n","protected":false},"excerpt":{"rendered":"
Hedge funds and banks are anteing up “hundreds of millions of dollars” to fund other people’s lawsuits in order to get a share of their awards, according to The New York Times. http:\/\/www.nytimes.com\/2010\/11\/15\/business\/15lawsuit.html?_r=1&hp In its lengthy Page One story Monday The Times outlined the pros and cons of investors paying for the costly experts and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[468,5,467],"class_list":["post-597","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-medical-malpracrice-lawsuit","tag-medical-malpractice-attorney","tag-medical-malpratice"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/posts\/597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/comments?post=597"}],"version-history":[{"count":9,"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/posts\/597\/revisions"}],"predecessor-version":[{"id":606,"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/posts\/597\/revisions\/606"}],"wp:attachment":[{"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/media?parent=597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/categories?post=597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cerebral-palsy-medicalmalpractice.com\/blog\/wp-json\/wp\/v2\/tags?post=597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}