The American Bar Association (ABA) serves as the United States’ legal representative aiming to further national ideals related to liberty and justice. ABA provides members with various tools to maximize professional success, while setting a high standard for legal innovation across the nation. ABA suggests that litigation finance is a tool to increase attorney/firm profitability, that also facilitates clients with required cash-flow to fund quality litigation.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
The American Bar Association (ABA) serves as the United States’ legal representative aiming to further national ideals related to liberty and justice. ABA provides members with various tools to maximize professional success, while setting a high standard for legal innovation across the nation. ABA suggests that litigation finance is a tool to increase attorney/firm profitability, that also facilitates clients with required cash-flow to fund quality litigation.
AmericanBar.org outlined five key educational concepts that the ABA finds a high priority for attorneys to embrace, as litigation investment continues to mature across the United States:
- Funding risk is mitigated by success scenarios. As such, normally funders only consider cases with a high likelihood of success.
- Litigation funding is not exclusively used for funding legal bills. Proceeds from litigation agreements often serve as a cash-flow lifeline.
- Funders are not decision makers in a case. Meaning, the client is in charge and the funder serves as third party to the claim.
- Discovery of litigation agreements are broadly privileged.
- Attorney client privilege is a point attorneys and clients must clarify at the outset, given various jurisdictional rules.
