Do you know any individuals who have sustained injuries as a result of a car wreck seek either lawsuit loans or settlement loans? Have you had any discussions with them regarding difficulties in obtaining either a lawsuit loan or settlement loan for a minor on behalf of whom they filed the claim? If so, you aren’t alone.
Many people often wonder why it is that it is either difficult or impossible to obtain lawsuit funding for a minor. This simply has to do with laws in the various states in which injuries occur. It is very important to realize that a contract is customarily not enforceable between one individual who has reached the age of majority and one who has not reached that age. In other words, the latter individual is classified as being in a “minor” status.
In fact, most contracts are actually void when such arrangements are made. Therefore, no insurance carrier is likely to honor such an arrangement. Thus, most funding entities will advance no monies for either lawsuit loans or settlement loans that involve a minor.
You may be asking yourself, “Why am I not entitled to obtain either a lawsuit loan or a settlement loan on behalf of my minor-child?” Although it seems logical to conclude that if both you and the minor-child were involved in the incident, that you would be able to claim for injuries that you both sustained. However, there are some nuances involved.
In many cases, the court will appoint an attorney ad litem. The individual the court appoints will be appointed specifically on behalf of that minor-child and will report only to the court. This individual has the ability to actually order a physician to obtain diagnostic tests that the individual deems necessary to make a determination as to the extent of injury the minor may have sustained.
Why is that? Unfortunately, many individuals who have minor-children do not always seek those minors’ best interests. Therefore, the court often establishes a precedent of appointing an attorney ad litem any time a minor is involved in such a dispute to ensure protection of that minors’ interests. Although this does not happen in each and every instance, this happens with sufficient frequency to preclude having a lawsuit funding entity advance lawsuit loans and settlement loans to individuals who have a minor either as the sole plaintiff or as one of the plaintiffs.
In most instances, it would be preferable for two separate claims to be filed. One for the adult and one for the minor. Thus, the adult’s claim will be able to proceed without restructuring from the court. The child’s claim may also be able to proceed without the court’s intervention, but when filed separately this doesn’t become a bar to being able to obtain lawsuit funding. Additionally, it makes the negotiations proceed, at least in large percentage of the cases, much more rapidly.
It is often difficult to elicit sufficient information from a minor to make a determination as to the extent of injuries they may have sustained. Therefore, you are advised to seek the attention of the qualified medical provider who actually specializes in the care and treatment of minors. The physiology rapidly changes in such individuals. Additionally, there are sufficient anatomical issues with which the physician will be aware to be able to more clearly ascertain the extent of any permanency of the injuries sustained.
If you have filed a claim and you are seeking either a lawsuit loan or settlement loan and that claim is rejected, speak to your broker to find out exactly what the issue is. Oftentimes, those who file such applications are able to obtain the lawsuit loans and settlement loans they seek once the claims are severed (i.e., filed separately for the adult and minor-child).