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New York City Bar Makes Right Call on Litigation Funding, Pennsylvania Should Follow Suit
By Curt Schroder, Executive Director of PCCJR
Litigation funding is a rapidly expanding business involving the provision of capital by a third-party “litigation funder” to a plaintiff in a lawsuit. In return, the litigation funder receives a portion of the recovery. Proponents of this practice argue that litigation can be prohibitively expensive, particularly in high-stakes litigation against deep-pocketed defendants.
However, litigation funding has problems and pitfalls as well. Concerns have been expressed that litigation funding increases the volume of litigation and prolongs litigation. Furthermore, some funders might exert control over the litigation in order to ensure a certain level of return on their investment in the case. Ethical issues arise when the financial recovery becomes paramount over the attorney’s duties to the client. [Read more…] about PCCJR Update — September 28, 2018