Glossary of Terms

Lawsuit and Legal Plaintiff Cash Funding

Glossary of Terms

Note: this glossary provides definitions of terms as they apply to Legal Funding and Plaintiff Cash Funding. Several of these terms may have slightly different meanings if they are applied elsewhere.

Appeal

To ask a higher court to reverse the decision of a trial court after final judgment or other legal ruling.

Appeals Court

Any court (state or federal) which hears appeals from judgments and rulings of trial courts or lower appeals courts.

Bankruptcy

A federally regulated process whereby individuals or entities that have liabilities greater than assets seek judicial protection from creditors.

Bankruptcy - Chapter 13

A type of bankruptcy in which an individual keeps some of his or her assets and pays creditors according to an approved plan.

Bankruptcy - Chapter 7

A type of bankruptcy in which an individual's debt is eliminated, but his or her assets are liquidated to repay creditors.

Bench Trial / Court Trial

A trial where the judge, rather than the jury, serves as fact finder and makes the final decision/judgment.

Class Action

A lawsuit filed by one or more people on behalf of themselves and a larger group of people who have similar claims against the defendant.

Commercial Litigation

A lawsuit between a combination of individual(s) and or business(es).

Contingency

An event that might not occur.

Contingency Fee

Fees paid to an attorney for their services only if they are successful in obtaining a positive outcome from a lawsuit.

Contract

An agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit.

Court Order

A legally binding ruling issued by a judge.

Defendant

A person(s) or organization(s) who is served with court papers by another that is alleging a grievance.

Discount Rate

The interest rate used to compute the present value of future cash flows.

Discounted Present Value

The net present value of future payments, this is determined by discounting the future payments to the present.

Funds Transfer

Money that is withdrawn from one account and placed into a different account.

Insurance Settlement

The payment of proceeds by an insurance company to the insured to settle an insurance claim within the guidelines stipulated in the insurance policy.

Insured

The person who is insured under the policy.

Insurer

Party that provides insurance coverage typically through a contract of insurance.

Interested Parties The payee, any beneficiary designated under the annuity contract to receive payments following the payee's death and any other party that has continuing rights or obligations under the contract.

Judgment

The final decision by a court in a lawsuit or appeal from a lower court's judgment. The word "decree" is sometimes used as synonymous with judgment.

Jury Trial

A trial of a lawsuit where the case is presented to a jury and the factual questions and the final judgment are determined by a jury. This is distinguished from a "court trial" in which the judge decides factual as well as legal questions, and makes the final judgment.

Lawsuit

A common term for a legal action by one person or organization against another person or organization, to be decided in a court of law.

Legal Representative

A person acting for and legally authorized to execute a contract for an individual.

Liability

Legal responsibility for one's actions or failure(s) to act. Lien Any official claim against property or funds for payment of a debt or an amount owed for services rendered.

Litigation

Any lawsuit or other resort to the courts to determine a legal question or matter.

Lump Sum

A sum of money paid in a single installment.

Multiplier

The number used to calculate how much is owed at the time of repayment. Unlike interest, a multiplier is usually a fixed number that only changes when certain conditions are met.

Net Value

The value of an estate after all debts have been paid.

Non-Recourse

"Without recourse." In the case of plaintiff cash funding, non-recourse means that if the plaintiff receives cash funding and ends up losing their case, then they do not have to repay the funds.

Periodic Payments

Payments that are paid or received regularly, typically on a monthly or quarterly basis.

Personal Injury

An injury to a person's body or mind, as the result of an accident.

Plaintiff

The person who initiates a lawsuit by filing a complaint with the clerk of the court against the defendant(s) demanding damages, performance and/or court determination of rights.

Principal

An initial sum of money invested prior to any fees or interest collected or paid.

Quote

A stated price for assets or services.

Settled Claim

When the original tort (i.e. personal injury or commercial lawsuit) claim is resolved.

Settlement

The resolution of a lawsuit (or of a legal dispute prior to filing a complaint or petition) without going forward to a final court judgment.

Settlement Offer

A written offer of a specific sum of money made by a defendant to a plaintiff, which will settle the lawsuit if accepted within a specific period of time.

Settlement Agreement

The arrangement made between an insurer and a policy owner (or beneficiary) concerning the manner in which the insurer will pay the policy proceeds to the beneficiary.

Settlement Date

The date agreed on for transferring funds to complete a transaction.

Structured Settlement

Settlement of claims or lawsuits by means of periodic payments.

Structured Settlement Agreement

The agreement, judgment, stipulation or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments.

Terms of the Structured Settlement

Includes, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or approval of any court or responsible administrative authority or government authority authorizing or approving such structured settlement.

Tort

A body of the law which permits an injured person to recover compensation from the injuring party. When one person injures another, either intentionally or by negligence, a court may award money damages to the injured party so that they will suffer the pain caused by their action. A civil wrong or wrongful act, whether intentional or accidental, from which injury occurs to another. Torts include all negligence cases as well as intentional wrongs which result in harm.

Trust

An entity created to hold assets for the benefit of certain persons or entities, with a trustee managing the trust (and often holding title on behalf of the trust).

Trustee

A person or entity who holds the assets of a trust for the benefit of the beneficiaries and manages the trust and its assets under the terms of the trust stated in the declaration of trust which created it.

Underwriter

The insurance company receiving premiums and accepting responsibility for fulfilling the policy contract.

Verdict

The decision of a jury after a trial, which must be accepted by the trial judge to be final. A judgment by a judge sitting without a jury is not a verdict (see Judgment).

Workers Compensation

Compensation that covers the medical expenses and lost income of employees if they are hurt in the course of doing work-related activities.

Wrongful Death

When a person's death is caused by the negligent or intentional act of a wrongdoer.

Lawsuit Funding

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