Medical Malpractice, Legal Funding vs. Lawsuit Loans


Changes in California Law

There have been a number of changes made to California malpractice law in recent decades. The cap for the amount of money a victim can receive has been continually increased as a way to address the cost of inflation which may have occurred since the medical incident was discovered. Lawyers are pushing to raise this cap again to help ensure that people who are the victims of malpractice can get the compensation they deserve.

Additional Requirements Added

Nonprofit organizations which have been pushing to increase malpractice compensation caps are also hoping to improve the sanctions which doctors have to abide by when offering care. This would include routine alcohol and drug testing to ensure that doctors are in a mental state that would allow them to provide the kind of care patients need without mistakes.

Why Malpractice Caps?

It seems unfair that a case which is so expensive that people need to find legal cash to manage their expenses could have a cap on the compensation victims can receive. The California malpractice cap is designed to limit the amount of cases which go to court as a way of deterring people who are simply looking for a payout. Because litigation and justification costs can get so high people who might not have a legitimate claim would be deterred from causing trouble for doctors.

This Protection Spreads Too Far

The problem with the wide sweeping cap is that it can prevent people from legitimate claims from being compensated fairly. A lawsuit loan is usually dispersed to someone likely to win their case, which implies that these people have a legitimate claim, but the amount they receive may not be enough to cover the lawsuit funding they needed to try their case in the first place, which can be very unfair.

Nonprofits Work on a Solution

In November 2014 a vote will come due that will help those that require lawsuit finance to cover expensive medical cases. This vote will determine if the cap on medical malpractice compensation can be raised to help victims get the support they need. This change has been long overdue and medical malpractice lawyers are hoping that this change will go through to help their patients manage their cases more fairly.

Do Not Be Deterred

If you believe you were the victim of malpractice do not let the cap deter you from seeking justice. You can receive financing to help with your expenses until you can be compensated. Pegasus Legal Funding does not offer a “lawsuit loan”, lawsuit loans, pre-settlement loans, or a pre-settlement loan, however, we offer non-recourse lawsuit cash advances. To learn more about this please visit our website. If you prefer to speak to a live representative confidentially and professionally about your specific case and funding needs you may call Pegasus’ toll free hotline at

855-FUNDYOU / 855-386-3968

.:About the author:.

James Sheridan - Pegasus Funding

James Sheridan is the Contracts Manager at Pegasus Legal Funding LLC and is responsible for the final stage of the funding approval process. James focus and priority is delivering to PLF’s clients the funds they need as quickly as possible
Author:James Sheridan

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