In a recent article for The New York Law Journal, two Norton Rose Fulbright attorneys breakdown the litigation funding industry and review what attorneys need to know about the prohibitions against litigation funding, the ethical concerns, and the transfer of control issues that may arise. The authors believe that the industry is “moving toward social and ethical responsibility (so do we).”
In the last few months, there have been quite a few articles presented by funders to promote the positive aspects of the nature, so this article is a nice refreshing positive assessment of the industry from the perspective of attorneys rather than funders.
The authors do an excellent job researching and discussing important conside that arise for attorneys when looking into litigation funding. They assess the notions of Champerty and Maintenance, and Usury and whether it applies to litigation funding (“The champerty argument thus is becoming of more limited use in opposition to litigation funding”). They also breakdown the ethical concerns and divide them into three categories, “(1) conflicts of interest; (2) privilege and confidentiality; and (3) control” – with a lengthy discussion about transfer of control and the types of litigation management a funder will look to exert.
Read the full article: ”Litigation Funding: Moving Toward Social and Ethical Responsibility”