The Case For Lawyer-Directed Litigation Funding In NY: Part 1
By Peter Jarvis and Trisha Thompson (January 10, 2019, 3:07 PM EST) -- Last year, the New York City Bar Association Ethics Opinion 2018-5 came to the conclusion that lawyer-directed, nonrecourse commercial litigation funding (or lawyer-directed funding, for short) violates the prohibition in New York RPC 5.4(a), and by extension ABA Model Rule 5.4(a) on sharing fees with nonlawyers. In this two-part article, we will explain our concerns with this opinion. Part one reviews the language and history of Rule 5.4(a) and points out that neither the language nor the history of the rule compels the conclusion that lawyer-directed funding violates the rule. Part two will then explain how and why lawyer-directed funding is, if anything, more likely to serve the interest sought to be served by the rule — the protection of lawyer independence — than other financial approaches, and how lawyer-directed funding can support greater access to justice through the ability to finance worthwhile cases that would otherwise not be brought....
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!