Westfleet Advisors' Best Practices In Litigation Finance

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Nov 07, 2024, 08:00 ET

Protecting Clients And Lawyers

NASHVILLE, Tenn., Nov. 7, 2024 /PRNewswire/ -- Top litigators, as noted by Westfleet Advisors, aren't just skilled courtroom advocates; they also guide clients in selecting key third-party service providers such as expert witnesses, e-discovery companies, and jury consultants. However, when it comes to litigation finance, the process requires a different level of caution and expertise.

Why Treat Litigation Finance Differently?
Litigation financing often serves as the only viable option for some clients to pursue their legal claims. But litigation finance is different from other service providers because it directly impacts the law firm's financial interests, creating a potential conflict of interest.

Litigation finance is a capital market designed to cover legal fees. In most cases, the law firm representing the client is the primary beneficiary of the funds. This stands in contrast to other litigation support services, which do not directly enrich the law firm. Additionally, repayment from the client is only required if the case is successful, similar to a contingent fee arrangement.

Given these complexities, law firms should be cautious about advising clients on the selection of funders, negotiating deal terms, or finalizing financing agreements. A conflict of interest exists that may require a waiver and, preferably, a recommendation that clients seek independent advice.

Why Use Independent Advisors?
The litigation finance market lacks transparency and standardized pricing, making it challenging for clients to navigate without expert help. Many law firms now turn to independent advisor Westfleet Advisors who specializes in providing conflict-free, expert guidance. With over 60 years of combined industry experience, the firm empowers clients with the insights and resources needed to secure the best terms in their funding negotiations.

Final Takeaway, Key Questions for Litigators to Consider:

Should you avoid providing a list of funders to clients?
Does offering funder names amount to a recommendation or endorsement?
Can a litigator accumulate enough expertise to meet Rule 1.1 requirements?

Reach out to us directly and let's talk about it.

About Westfleet Advisors
Westfleet Advisors is the trusted leader in litigation finance, known for delivering comprehensive insights and strategic guidance to claimholders and their legal teams. With a deep understanding of funder preferences and the evolving market landscape, the leadership team leverages over 60 years of combined industry expertise to help clients confidently navigate the complexities of litigation finance. Our renown flagship publication, The Westfleet Insider, provides a transparent, data-driven analysis of the state of the litigation finance market. Visit our website, subscribe to emails and contact us to learn more.

Media Contact
Valorie Luther
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SOURCE Westfleet Advisors