It cannot be denied that this is a time of stress, uncertainty, and delays. The legal field feels this more acutely than other industries, and it’s already showing in how cases are conducted. We all have a choice: react to what happens, or try to get ahead of it through diligent planning. One key factor in said planning comes in the form of monetization.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
It cannot be denied that this is a time of stress, uncertainty, and delays. The legal field feels this more acutely than other industries, and it’s already showing in how cases are conducted. We all have a choice: react to what happens, or try to get ahead of it through diligent planning. One key factor in said planning comes in the form of monetization.
As ACC Docket reports, monetization involves utilizing legal claims as collateral to gain working capital. This might be calculated as a multiple of the monetized amount, a percentage of the total recovery amount, or some combination of the two.
Monetization funds are provided for the purpose of working capital. That means they can be used to pay legal fees, under specific conditions. Monetized funds can be used in conjunction with traditional funding, which allows lawyers to be compensated as sort of a hybrid-contingency platform. Coronavirus constraints may make this an attractive option for firms and counsel whose budgets are impacted.
In addition to slowdowns in most courts, there are other factors impacting the closing of cases—like the inability or unwillingness to take remote depositions impacting discovery. With that in mind, a firm experiencing budget constraints during COVID-19 would do well to consider monetization.
