NY Bar Restricts Law Firm Financing

On 30th July, the Professional Ethics Committee of the New York City Bar Association issued a formal opinion that found that Rule 5.4(a) of the New York Rules of Professional Conduct does not permit a lawyer to enter into a financing arrangement with a litigation funder (or any non-lawyer) where the lawyer’s payments to the funder are contingent on the receipt of legal fees or on the amount of legal fees received by the lawyer in one or more specific matters.