LitCap has many advantages over traditional methods of attorney financing
LitCap is a system developed to give attorneys access to capital in order to fund litigation case costs. LitCap gives attorneys the flexibility to expand their business without capital constraints, and reduces the risk associated with litigation. LitCap offers many advantages over the traditional methods lawyers employ when financing case-related expenses.
Here are a few of the key attributes of the LitCap system:
As an active LitCap member, you will have unlimited access to capital to finance your clients' case-related expenses.
Like your contingent fee agreement, if you fail to make a recovery, you do not have to repay any of the principal you borrowed.
Investors are not permitted to communicate with attorneys post-funding and do not participate as a partner.
Funds are allocated to the client's case from the outset, and the interest accrued is on the principal only, so it is easily segregated on a case-by-case basis and can ethically be passed through to the client.
Funding may be used only for case-related expenses. Once funded, all funds are transferred directly to the attorney's IOLTA* account.
Frivolous or meritless lawsuits are not considered by our investors.
All information exchanged between the attorney and potential investors is non-privileged and kept strictly confidential.
The LitCap system conforms to state ethics guidelines for the jurisdiction in which we serve.
Participation on the LitCap Marketplace is reserved for the most accomplished trial lawyers. Attorneys using LitCap have been thoroughly screened.
* Interest on “IOLTA” accounts is a method of raising money for charitable purposes, primarily the provision of civil legal services to indigent persons, through the use of interest earned on certain lawyer trust accounts.