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.
The proposed changes to Rule 5.4, published on April 5 by the New York City Bar Association’s professional responsibility committee, would allow a lawyer to pledge security interests in unrecovered legal fees to a non-lawyer, including a financing company.
