Not every lawsuit resolves in a single, lump-sum settlement. In many cases—especially those involving multiple defendants, layered insurance coverage, or complex damages—settlements occur in stages. A partial settlement may resolve claims against one defendant while litigation continues against others.

For plaintiffs relying on pre-settlement funding, staged settlements can raise important questions: Does funding need to be repaid immediately? Can funding continue? How does this affect the final recovery? This article explains how pre-settlement funding works when cases settle in stages and what plaintiffs should expect.

What Does It Mean When a Case Settles in Stages?

A staged settlement occurs when a case resolves incrementally rather than all at once. This often happens when:

• There are multiple defendants or insurance carriers

• One defendant settles early while others continue to litigate

• Policy limits are paid out in phases

• Claims are resolved at different procedural stages

• Portions of damages are settled while others remain disputed

Staged settlements are common in construction accidents, product liability cases, commercial litigation, and mass torts.

Does a Partial Settlement Trigger Funding Repayment?

In most cases, pre-settlement funding is repaid only when the case fully resolves. A partial settlement does not automatically trigger repayment unless:

• The funding agreement specifically allows repayment from partial proceeds

• The settlement funds are disbursed to the plaintiff

• The attorney confirms repayment is appropriate at that stage

Funding providers coordinate closely with attorneys to ensure repayment aligns with the terms of the agreement and the plaintiff’s best interests.

Can You Keep Pre-Settlement Funding After a Partial Settlement?

Yes. In many cases, funding remains in place after a partial settlement—especially if:

• Additional claims or defendants remain

• The majority of damages have not yet been resolved

• The plaintiff still faces financial pressure

• The attorney confirms the case’s continued viability

Funding continues to be non-recourse and tied to the final outcome of the case.

Can You Receive Additional Funding After a Partial Settlement?

Possibly. Additional funding may be available if:

• The remaining portion of the case supports it

• The partial settlement does not over-leverage the recovery

• The attorney confirms remaining case value

Responsible funding providers reassess the case after a partial settlement to protect the plaintiff’s long-term recovery.

How Attorneys Handle Funding in Staged Settlements

Attorneys play a key role in staged settlement scenarios. They typically:

• Manage the distribution of partial settlement funds

• Negotiate lien and funding repayment timing

• Ensure sufficient funds remain for final resolution

• Coordinate with funding providers

This ensures that funding does not interfere with ongoing litigation or settlement strategy.

Why Staged Settlements Often Take Longer

Cases that settle in stages are usually complex. Delays may occur due to:

• Continued discovery against remaining defendants
  n- Ongoing expert testimony and case development

• Disputes over liability allocation

• Extended negotiation timelines

Funding helps plaintiffs remain stable while these issues are resolved.

Why Responsible Funding Matters in Staged Settlements

In staged settlements, overfunding can significantly reduce a plaintiff’s final recovery. Ethical funding providers evaluate:

• Total remaining case value

• Existing liens and attorney fees

• Amount already recovered

• Appropriate advance limits

This ensures plaintiffs retain meaningful compensation when the case fully concludes.

Why Plaintiffs Trust Instabridge

Instabridge has experience working with staged settlements and complex litigation. We offer:

• Clear guidance on repayment timing

• Flat-rate, transparent pricing

• Non-recourse funding protection

• Attorney coordination at every stage

• Responsible reassessment after partial settlements

We support plaintiffs throughout the entire lifecycle of their case—not just the beginning.

Conclusion: Stability Through Every Phase of Litigation

Staged settlements don’t change the purpose of pre-settlement funding—to provide stability while justice unfolds. With proper coordination and responsible funding, plaintiffs can navigate partial resolutions without financial disruption.

If your case is settling in stages and you have questions about how funding is handled, contact Instabridge today. We’ll explain your options clearly and help you stay supported until your case fully resolves.