Focus on Litigating for Your Client Instead of Being Their Lender

In this blog, we discuss insights into how you can focus more on litigating for your client by financing case disbursements.

Self-financed firms pay the case expenses for their clients and can only recoup these expenses at settlement. In today’s high-inflation economy, this practice is a detriment for the firm because law firms are barred from applying interest to these expenses. That means that the real market value of the money you invest in case costs is diminished when you’re paid back two or three years later at settlement.

Instead of essentially giving your clients interest-free loans, explore case cost financing with a financial partner. When you finance the case costs, the client covers both the principal as well as the interest. Each state has its own rules for passing on the cost of financing, so you would need to consult your state’s ethics opinion. Some firms choose to pass on the cost of the interest to their clients and it is advisable to put the language in your retainer agreements to allow for the option to do that. Before doing so, it is important for you to check your state’s ethics opinion.

Watch the video above for more details and insights how to you can focus more on litigating for your client and less on being their lender, featuring Chad Dudley, managing partner at Dudley DeBosier Injury Lawyers.