Benefits of Working with a Finance Company that Specializes in Contingent Litigation

Law firms avail themselves of a secure source of funds that provides not only for future case development costs, but also for the recovery of monies already advanced on behalf of their clients.  In the typical credit facility agreement, participating firms will be able to recover up to 100% of the amount of their case development costs in immediately available cash.  The typical program produces many benefits for participating firms, including:

  • No principal payment until the underlying case is resolved. The firm is not required to make any principal payments until a case is resolved. Traditional banks require periodic repayment of principal balances.
  • Payments can be tied to a firm’s cash flow. Most facilities require only interest payments each month, principal payments are only required when the firm receives income.
  • No interest expense to the firm on cases that are won or settled successfully. Most states provide a mechanism by which attorneys are permitted to recover the costs of litigation when a case is brought to its conclusion.  In addition to the costs of depositions, expert witnesses, demonstrative evidence, and the like, interest expense paid to third parties can generally be treated as a cost of litigation.  Each state has its own ethics rules and opinions, with which participating law firms must comply.
  • Larger lines of credit are available. Banks are typically reluctant to lend large sums of money to firms engaged in contingent litigation.  As a result, bank lines are generally insufficient to cover the majority of a firm’s inventory of case development costs.
  • Reduced risk. Traditional banks are often indifferent to the cash flow requirements of a trial lawyer when a line of credit expires.  Most providers have designed their programs to insure that attorneys have sufficient time to bring cases to a successful conclusion.
  • Eliminate Phantom Tax. Since advances on case expenditures are generally not deductible the capital that is invested in case development can show up as income to the firm resulting in a tax payment on funds  that are not realized or available to either the firm or its partners until the underlying cases are successfully resolved which may be years later.

About Bill Tilley

Bill Tilley, President and Chief Executive Officer – Bill Tilley is the President and CEO of Amicus Capital Services LLC and is responsible for managing day to day operations, marketing, originations and client relations. In addition Mr. Tilley serves on the credit committee along with the three other members. For the past ten years Mr. Tilley has been devoted to creating and then fine-tuning the legal finance industry. Mr. Tilley joined Themis Capital in 1999, launching the legal finance industry in California. Within two years California became the largest market for legal loans. Mr. Tilley was instrumental in growing Themis from $12 million in loans upon his arrival to more than $135 million in less than 4 years. After successfully winding down the Themis portfolio in 2004, Mr. Tilley became the largest broker of legal financial services while consulting exclusively for Counsel Financial Services through 2006. He continued his devotion to creating a full service financial services company that caters exclusively to the legal community leading to the launch of Amicus Capital Services, LLC in early 2007. In 2008 Mr. Tilley expanded Amicus’ financial offerings to include structured settlement/ fee products as well as financial advisory services. Mr. Tilley has personally originated more than $100 million in attorney loans and has participated in the origination of more than $200 million. Mr. Tilley counts several of the most successful plaintiff attorneys in the country as personal friends and has developed a network that includes thousands of invaluable industry contacts. As an expert on legal finance Mr. Tilley has spoken numerous times at attorney conferences throughout the country. In addition Mr. Tilley was recognized on Public Justices wall of honor for his efforts in promoting the non-profit public interest association.
This entry was posted in 1. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s