Leveraging Case Inventory to Pursue a $52 Million Settlement for a Client
For Philadelphia-based personal injury law firm, Laffey, Bucci & Kent (LBK), leveraging case inventory proved to be a game changer in its pursuit of securing a $52 million settlement for a client.
In 2017, Laffey, Bucci & Kent sought to represent and advocate on behalf of 29 victims who suffered sexual and physical abuse at a boarding school in West Virginia. This high-profile case would require considerable resources – in terms of the firm’s litigation staff and the investment needed for expert testimony and investigation resources.
Confronting a Familiar Challenge
Like many contingency fee law firms, LBK had grown to a point where the weight of paying for case costs using law firm revenue was not aligned with the firm’s ethos for attaining the best result for its clients.
As LBK discovered, traditional banks lacked an in-depth understanding of the litigation industry which narrowed their view of what a law firm is truly worth. The true value of a contingency fee law firm is the future value of its case inventory. This disconnect frustrated Laffey, Bucci & Kent and negatively impacted its ability to grow and participate in cases meaningful to the law firm.
“When we formed a relationship with traditional banks, it was clear that they didn’t understand our business model,” recalled Jeffrey Laffey, Managing Partner at Laffey, Bucci & Kent. “They didn’t understand important things, like the timing of a case.”
Leveraging Case Cost Financing
When LBK allied with Esquire Bank in 2017, the law firm accessed a case cost line of credit which provided the flexibility and financing that aligned with the firm’s aspirations for growth. “It all starts with Esquire’s understanding of how our inventory is an asset,” noted Jeffrey Laffey. “It is a tremendous help to deal with an institution that obviously gets the business model and fully supports you in your efforts to get the best results for your clients.”
With Esquire Bank’s support, Laffey, Bucci & Kent found the financial freedom to invest heavily into the case. As a result, the law firm was able to secure the 29 victims related to the West Virginia school a record $52 million settlement and issue a report that led to the arrest of the alleged perpetrators of the abuse.
Watch the 3-minute video to learn about how Laffey, Bucci & Kent leveraged its relationship with Esquire Bank to better attain justice for its clients and fuel the law firm’s growth.
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Not only did investing in case resources help Laffey, Bucci & Kent attain better justice for its clients, it also contributed to increased operations, law firm growth and resulted in a 365% revenue increase over three years.
Meet with Esquire Bank
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. Case inventory is also an important valuation for presenting your law firm to potential buyers.
Schedule a no-obligation consultation to understand how Esquire Bank’s Case Cost Line of Credit can help you achieve your growth or succession goals.
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