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Lawyer-Lender Fee Deals An Ethics Breach, NYC Bar Says

Law360 (August 8, 2018, 8:53 PM EDT) -- Lawyer-lender financing deals in which repayments by attorneys are pegged directly to legal fees violate the ethics ban on sharing fees with nonlawyers, according to a recent opinion from the New York City Bar Association.

Focusing on contingency-like deals between attorneys and third-party lenders, the bar's Professional Ethics Committee said July 30 the fee-split rule in New York and elsewhere has generally been applied to any arrangement in which payments to nonlawyers are based on how much the lawyer was paid.

That principle has been reflected...
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