It Can Be Risky For Litigators To Advise On Litigation Funding (Law360)
Law360, March 6, 2020
It Can Be Risky For Litigators To Advise On Litigation Funding
This view is not unique. Indeed, the recent report drafted by the New York City Bar Association‘s working group on litigation funding emphasized that there is a potential for conflicts of interest when a litigator advises a client who is seeking litigation financing. On the other hand, that type of conflict may well be one to which the client could consent. Still, as with any other possible conflict, there remains a question of prudence: should the lawyer move forward and ask for consent or should the lawyer recommend that the client seek independent advice? Given the conflict issues in play here, it is prudent for firms to refrain from negotiating the deal terms or funding documents when one of their lawyers will be handling the litigation.