Edelman & Edelman: Recognizing Case Inventories as Valuable Assets Worth Funding
In 2016, New York law firm Edelman & Edelman allied with Esquire Bank and its case cost financing solutions – a decision that freed up capital to invest in case resources, instead of paying crushing financing rates and fees. The impact of that decision – a 158%* increase in case costs and a 78% increase in the fees associated with the firm’s cases.
Read the complete case study now to learn more about the bold success story of Edelman & Edelman.
Edelman & Edelman (www.edelmanpclaw.com), is a New York City based law firm founded in 1956, specializing in construction accidents and medical malpractice cases. They have leveraged Esquire Bank’s case cost financing solutions to build a successful, highly competitive personal injury firm.
A familiar challenge
Edelman & Edelman is a successful personal injury law firm based in Manhattan, New York. For nearly seven decades, Edelman attorneys have represented clients on a range of cases, including personal injury, unsafe products, motor vehicle accidents, and medical malpractice. Since Jerome Edelman founded the firm in 1956, they have recovered more than $600 million for their clients.
The firm has earned multiple awards and accolades. They are rated AV Preeminent by Martindale Hubbell, are in the Super Lawyers category, and are included in the National Trial Lawyers Top 100 Lawyers and Top 25 Brain Injury Lawyers rankings.
“When my father started our firm in the late 1950s, law firms were run like candy stores. Because cases were very inexpensive, and talent was inexpensive… It was not even considered a burden to invest your own funds to advance your case costs.
But as the industry matured, settlements grew into the millions of dollars. Law firms didn’t have the money that could match the insurance industry. And not only the insurance industry, there’s the auto industry, and the pharmaceutical industry — billion-dollar industries. Then there’s medical malpractice and the carriers which were taking much larger premiums. They were well-equipped to defend these cases.”
Martin Edelman, co-founder Edelman & Edelman, New York State Trial Lawyer Past President and son of fellow co-founder Jerome Edelman
Marty believes that Esquire Bank is a real saviour to plaintiff personal injury firms because they charge bank rates and not expensive specialty law firm funding company rates, a cost-savings that cannot be ignored when litigating costly cases against opponents with deep pockets.
“I will sit down with my clients and explain to them that litigation is expensive; that if we’re going to fight the fight, our costs need to be funded. People ask me why I spend a lot of money on my cases, and I’m known for it. I say I’ve never understood what a cheap loss looks like. I’d rather have an expensive win.”
A unique solution
Esquire Bank has supplied Edelman & Edelman with Case Cost Financing Line of Credit and a Working Line of Credit for the past several years. According to Martin Edelman, Esquire is a special bank and unique in the industry because: “The benefit of a bank rate, a full line of credit, and the confidence of the bank in your ability to repay was an extraordinary convergence of a number of factors which has, in my opinion, changed the industry.”
Since 2016, the firm’s partnership with Esquire Bank has allowed Edelman & Edelman to avoid the crushing charges specialty law firm funding companies typically charge for case cost borrowing. The firm uses the funds they would have otherwise had to spend on case costs to invest in growth and pay operational costs. This essential line of credit has helped Edelman & Edelman to increase their competitive advantage.
“Esquire Bank is unique. They’re not just special, they’re unique. What Esquire Bank has given me, besides peace of mind, is the ability to fund cases at a level where I can be more than competitive with my adversaries, I can overwhelm them.”
Unlike other banks, Esquire Bank does not only evaluate a firm’s most recent income statements to assess their ability to afford a line of credit. They visit a law firm and thoroughly review the firm’s case inventory to qualify the firm for case cost financing, oftentimes offering a much larger credit facility than traditional banks can.
“When a funding company or a bank comes into your office and they look at your inventory, the person looking at the inventory is probably the most critical evaluator. You want someone that really understands the value of the cases so they can assess what you say the value of the case is against their own experience.
Esquire Bank has skilled lawyers who came in to see us, and they asked the right questions. They understood what the issues were in the cases and got right down to what they thought the parameters of our case inventory value were. It was a conversation, and not a confrontation.”
With Esquire Bank as a partner, Edelman & Edelman is able to succeed boldly on their own terms knowing that their bank has their back, understands their business, and is deeply invested in their success.
A Winning Result and Peace of Mind
The proof is in the numbers. Since partnering with Esquire Bank, Edelman & Edelman has grown the value of their case inventory by 80%, increasing the fees associated with their cases by 78%. A clear line can be drawn from Martin Edelman’s decision to acquire a case cost line of credit to his ability to grow fees.
When it comes to case costs, the backing of Esquire Bank has allowed Edelman & Edelman to boldly grow their case costs by 158%, allowing them to get the best value for their clients and to focus on litigating their cases to achieve the best possible results. Marty has successfully managed his lines of credit to grow his business and brand, ensuring that he will land the next great case.
Edelman & Edelman has reinvested the money which they would have otherwise spent on repaying specialty law firm funding companies’ crushing rates into their operations and marketing to grow intakes and expand services. As a result of this cost saving and the flexibility of having a low-cost line of credit, they can regularly hire the top medical experts, scientists, academics, and others who do cutting-edge research to testify in court and increase their odds of winning. They go beyond just winning or settling a case, they stand by their clients until they receive full restitution for the traumas their clients have withstood.
“The expression ‘peace of mind’ is an overrated expression, but it’s true. When I’m dealing with Esquire Bank, if I need further funding, I have peace of mind that I’m going get it. So, the difference is, I can do my job, which is try cases and win them or settle them, knowing full well that they have my back. And when you’re in a business in which you have to win to eat, somebody that has your back is a very valuable partner.”
Martin Edelman, co-founder of the firm, New York State Trial Lawyer Past President and son of fellow co-founder Jerome Edelman
Esquire Bank’s case cost financing solutions provide many law firms with peace of mind in ways other commercial banks will not. We assess the value of your firm’s case inventory to determine your financing eligibility, not just your most recent income statements.
Looking for more about the success story for Edelman & Edelman?
Now that you’ve read the complete case study of how Edelman & Edelman leveraged Esquire Bank’s case cost financing solutions, watch the video testimonial here.
Meet with Esquire Bank Today
Whether your goal is investing in growth, expanding your practice, or positioning your firm for a merger or acquisition, understanding your case inventory is an important valuation for your firm. Leveraging your firm’s case inventory to finance case disbursements can allow you the flexibility and liquidity to pivot your focus to investing in digital marketing, technology, and staff.
Schedule a no-obligation consultation with an Esquire Bank Senior Relationship Manager today at a time convenient to your schedule.
For more on Esquire Bank’s expertise in providing tailored solutions for law firms, please visit Esquire Bank’s resources portal, Lawyer IQ, where you can learn about growing your business, financing for law firms, marketing strategy best practices, and more.
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* The information provided on (or accessed through) this blog is provided for general informational purposes only and is not intended as, and should not be relied on for, law firm operations, tax, legal or accounting advice. Some of the information may not be applicable or appropriate for all law firms. Please consult your own tax, legal and accounting advisors as appropriate. Results may vary by law firm.
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