A lawyer may not enter into a financing agreement with a nonlawyer litigation funder when the lawyer’s future payments to the funder are contingent on the lawyer’s receipt of legal fees or the amount of legal fees received in a specific case or portfolio of cases.
January 17, 2019 Top Story
Cold Water Thrown on Certain Litigation Funding
Litigation funding tied to specific future legal fees violates fee sharing rule
By Onika K. Williams
Under the New York City Bar Association’s Committee on Professional Ethics Formal Opinion 2018-5, litigation funding arrangements that are tied to specific future legal fees violate New York’s Professional Code of Conduct Rule 5.4’s prohibition on fee sharing with nonlawyers.
Premium Content For:
- Litigation Section