New York City Bar Association. Photo: Monika Kozak/ALM City Bar Proposal Would Formally Allow Fee Sharing With Litigation Funders
The New York City Bar Association's professional responsibility committee proposed statewide changes to Rule 5.4 that would allow lawyers to pledge security interests in unrecovered legal fees to non-lawyers, including third-party financers.
April 09, 2024 at 04:33 PM
6 minute read
News
The original version of this story was published on New York Law Journal
What You Need to Know
- A recently published amendment proposal by the city bar's professional responsibility committee would formally permit fee sharing with non-lawyer entities like litigation funders.
- Rule 5.4 of New York state's professional conduct rules for lawyers has been interpreted to prevent fee-sharing with non-lawyers.
- Litigation funders like Burford Capital have been pushing for a different approach.
Leaders at the New York City Bar Association this month unveiled amendments to the state's professional conduct rules that would formally permit non-lawyer financers to receive a portion of fees recovered in litigation, provided that the lawyers maintain professional independence and notify clients of third-party involvement.
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