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.[1] 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....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.


A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!