The Deepwater Horizon disaster unleashed one of the most complex, protracted settlement processes in U.S. history. While plaintiffs wrestled with claims, class-action coordination, and administrative backlogs, law firms also faced a less visible but critical challenge: delayed disbursement of attorneys’ fees. For law firms that had invested years and resources into massive multidistrict litigation, the lag between court approval and actual payout created cash flow strain. Balanced Bridge Funding’s post-settlement funding solutions for attorneys exist precisely to mitigate that gap.
The BP Settlement Delays: Why Attorneys Wait
In the BP litigation, after years of phased settlements and court rulings, a cumulative award of $600 million in attorneys’ fees was approved for plaintiffs’ counsel as part of the overall deal. However, those fees could not be immediately distributed; they required court certification, allocation among dozens of firms, appeals, objections, accounting of common-benefit work, and final administrative processing.
This administrative bottleneck is not atypical in large class or MDL cases. The more parties, liens, and overlapping claims involved, the more layers of review and delay. In essence, firms had a legally enforceable right to fees, but that right could not be monetized until the administrative machinery caught up. Some firms ended up waiting months or even years to receive the portion they were owed.
Why the BP Case Matters to Law Firms Seeking Post-Settlement Funding
- Enforceable Obligation as an Asset
The BP case underscores that once a court approves fees, that approval becomes an asset. Though delayed, it is a legally enforceable right, which makes it attractive for post-settlement funders to evaluate and underwrite. - Large, Complex Matters Amplify Delay
The very size and complexity that make a case high value also tend to increase the delay in distribution. Class actions, MDLs, mass torts, and multidistrict environmental cases often require multi-stakeholder coordination, objections, and appeals. Those delays create “dry periods” where firms can’t recover capital from their own work. - Risk Mitigation through Non-Recourse Advances
A post-settlement funder takes the risk that the fee disbursement may be further delayed, reduced, or contested. But by structuring the advance as a non-recourse purchase of the fee right, the firm is insulated from repayment pressure if something goes awry. - Bridging the Gap Gives Strategic Flexibility
In large matters like BP, firms often need capital for continued litigation, business operations, or staffing. Post-settlement funding allows them to bridge the timing gap and maintain momentum without collateralizing personal or firm assets.
Let Balanced Bridge Funding Help with Your Next Steps
The BP oil spill litigation exemplifies how, even when fees are awarded, distribution may lag.
For firms that have earned contingency or common-benefit fees but must await the administrative wheels to turn, post-settlement funding offers a vital solution — turning that future receivable into working capital today.
Speak with one of our legal funding specialists about post settlement funding for attorneys, please call 267-457-4540 or email info@balancedbridge.com.
If your firm is facing delayed fee distribution—even in a case as complex as an MDL or class action, Balanced Bridge Funding can help.
We provide non-recourse post-settlement advances to attorneys based on approved, enforceable fee rights. Don’t wait on bureaucracy—apply now or contact a Balanced Bridge specialist to unlock your firm’s earned value today.
You might also be interested in:
Photo Credits
Warzone_in_Gulf_of_Mexico: Image of boats fire oil in ocean Burning and skimming operations in the Gulf of Mexico; By kris krüg – Flickr: Warzone, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=30526485
Thick_Oil_Washes_Ashore: Thick oil washing onto the shores of Louisiana; By Louisiana GOHSEP – Flickr: Thick Oil Washes Ashore, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=30526225
Turtle_Rescue_and_Rehabilitation: Capturing heavily oiled young turtles 20 to 40 miles offshore for rehabilitation; 14 June 2010; By NOAA’s National Ocean Service – Flickr: Turtle Rescue and Rehabilitation, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=30525962
Defense.gov_photo_essay_100506-N-6436W-023: Oil from the Deepwater Horizon oil spill approaches the coast of Mobile, Alabama, 6 May 2010; By Petty Officer 1st Class Michael B. Watkins – This image was released by the United States Navy with the ID 100506-N-6436W-023 (next).
