Litigation Financing Raises Ethical Issues: NYC Bar

Law360, New York (June 16, 2011, 4:08 PM EDT) -- Lawyers who represent clients receiving third-party litigation financing face tough ethical issues, from risking client confidentiality to potentially making decisions based on how it might impact their wallets, the New York City Bar Association warned Wednesday.

In a formal opinion, the association specifically examined nonrecourse litigation financing, in which a company pays a client's attorneys' fees and gets compensated dependent on a favorable settlement or verdict.

While the opinion says that the practice, which provides funding for commercial or personal injury litigation, is not unethical per...
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