For Litigation Finance, New Heights Are Within Reach (Bloomberg Law)

Bloomberg Law, November 16, 2020

For Litigation Finance, New Heights Are Within Reach

In moves that have encouraged rather than regulated the industry, Minnesota abolished its state champerty doctrine, a common law doctrine that made it illegal for third parties to take a financial interest in litigation, thus leaving more room for litigation finance arrangements in the state. And Arizona became the first state to abolish its version of ABA Model Rule 5.4, which many lawyers interpreted as possibly barring portfolio fee-sharing arrangements with nonlawyers. Similarly, earlier in the year, a New York City Bar Association working group issued a report recommending changes to New York Rule of Professional Conduct 5.4 in support of the litigation finance industry.

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