Can you get lawsuit funding on a nursing home abuse case?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

Who can sign for an advance

Only someone who owns the claim, or has legal authority to act for that person, can sign a funding contract against it. A resident who can make decisions signs for himself or herself. When the resident cannot, the questions are who holds authority, such as a court-appointed conservator or guardian or an agent under a power of attorney, and whether that authority reaches a contract like this one or needs a court’s approval. A son or daughter who is simply next of kin generally cannot pledge a parent’s claim.

If the resident has died, California’s elder abuse law passes the right to bring or continue the case to the personal representative. If there is none, it can pass to an intestate heir whose interest is affected, the successor in interest, or another interested person who is not just a creditor, once the declaration required by CCP 377.32 is filed (Welf. & Inst. Code 15657.3(d)). Money from a claim that belonged to the resident may pass through the estate. The family’s own wrongful death claim is separate; our wrongful death page explains how ownership and probate affect an advance.

Special remedies for elder abuse

Each state handles these claims under its own rules.

• California. If a plaintiff proves by clear and convincing evidence that a defendant is liable for physical abuse, neglect or abandonment and acted with recklessness, oppression, fraud or malice, the court “shall award to the plaintiff reasonable attorney’s fees and costs” (Welf. & Inst. Code 15657). The usual limits of CCP 377.34 do not apply, so the resident’s pain and suffering can be recovered even after death, up to the amount allowed under Civil Code 3333.2(b).
• Washington. A vulnerable adult who suffered abandonment, abuse, financial exploitation or neglect has a cause of action against facilities and listed individuals, and a prevailing plaintiff is awarded actual damages plus costs, “including a reasonable attorneys’ fee,” in addition to other remedies (RCW 74.34.200).
• Texas. Chapter 74 of the Civil Practice and Remedies Code lists a nursing home as a “health care institution,” which makes it a health care provider under that chapter (CPRC 74.001). Claims against a nursing home generally follow the medical liability rules: a two-year limitations period (74.251), a written report from a qualified medical reviewer within 120 days after each defendant answers (74.351), and a $250,000 per-claimant cap on noneconomic damages for a single institution (74.301). Our medical malpractice page covers those rules.

For a funder, a fee-shifting statute or a damages cap changes the likely recovery, so ask your lawyer which claims are realistic in your case.

Arbitration agreements in the admission papers

Many admission packets include an agreement to arbitrate disputes instead of going to court. For facilities that take Medicare or Medicaid, federal rules say the facility “must not require” a resident or representative to sign one as a condition of admission or continued care, the agreement must give the right to rescind it within 30 calendar days of signing, and it may not discourage contact with federal, state or local officials, including ombudsman representatives (42 C.F.R. 483.70(m)). In California, arbitration clauses must be on a separate form, must state that agreeing is “not a precondition” for treatment or admission, and must give notice that a patient may not waive the right to sue for violations of the Patient’s Bill of Rights (Health & Safety Code 1599.81).

Whether an agreement binds a resident, and whether it reaches a family’s wrongful death claim, are questions for your lawyer. A funder will usually ask whether one was signed, because arbitration changes the forum, the timeline and sometimes the size of awards.

Medicare, Medi-Cal and the recovery

When a resident has Medicare or Medicaid (Medi-Cal in California), those programs may have paid for care after the injury. Medicare must be reimbursed for conditional payments once a settlement or judgment shows another party was responsible, and the United States may recover from any entity that received payment from the responsible plan (42 U.S.C. 1395y(b)(2)(B)). Medi-Cal’s recovery from a beneficiary’s claim is limited to the part of the recovery that represents payment for medical care, with courts guided by the Supreme Court’s Ahlborn decision (Welf. & Inst. Code 14124.76). Those claims generally get resolved before a funder is paid; see funding and medical liens.

Benefits are a second concern. Medi-Cal started counting assets again on January 1, 2026, for groups that include nursing home residents, with a limit of $130,000 for one person through June 30, 2027 and lower limits after that (DHCS). Advance money sitting in a resident’s account could matter. Ask a benefits planner first, and see SSI and Medicaid. Our FAQ on whether Medicare pays for nursing home care explains the coverage.

Timeline and reporting

These cases often depend on facility charts and state inspection findings, and they can take time; see how long a nursing home lawsuit takes. Most advances add charges every month, and state funding rules differ; see the laws by state table. If a resident is in danger now, reporting comes before any money question; our FAQ on how to report nursing home abuse lists where to call, and Beverly Law’s nursing home abuse section covers California facility reports.

What to ask before you sign

• Who owns this claim, and who has legal authority to sign for the resident or the estate?
• Did anyone sign an arbitration agreement at admission, and was it rescinded within 30 days?
• Which elder abuse or medical liability rules apply, and is there a damages cap?
• What do Medicare and Medi-Cal claim, and could an advance affect the resident’s benefits?
• What would be owed at 12, 24 and 36 months?

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.