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Third-Party Litigation Financing: Industry Standards
American Bar Association Model Rules of Professional Conduct (“Model Rules”)
- Model Rule 1.8(f) prohibits a lawyer from accepting compensation for representing a client from a third-party unless the client gives informed consent, there is no interference with the lawyer’s professional judgment or client–lawyer relationship, and client information is kept confidential.
- Model Rule 5.4(a) prohibits an attorney or law firm from sharing legal fees with a nonlawyer except in limited circumstances. Under Model Rule 5.4(c), a lawyer shall not permit a person who recommends, employs, or pays the lawyer to render legal services for another to direct or regulate the lawyer’s professional judgment in rendering such legal services.
Bentham IMF, Code of Best Practices (Apr. 2016)
Alternative Litigation Financing in the United States: Issues, Knowns, and Unknowns, Steven Garber (RAND Corp. 2010)