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ARTICLE · 27 APRIL 2017

Recent N.Y. Ethics Opinions: March/April 2017

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Opinion 1108 addressed whether a lawyer may refer clients to a third-party financing company, so that the company could help the clients pay the lawyer's fees.

United StatesLaw Practice Management
Tyler Maulsby
Tyler Maulsby
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NEW YORK STATE BAR ASSOCIATION OPINIONS

NYSBA Ethics Op. 1108 (Nov. 2016):
Referral to Third Party Financing Companies

Opinion 1108 addressed whether a lawyer may refer clients to a third-party financing company, so that the company could help the clients pay the lawyer's fees. The potential financing arrangements would not be contingent on the outcome of the matters. The lawyer would pay the financing company either a one-time "registration fee" or a monthly "subscription fee." Additionally, while the financing company would not pay the lawyer's fees directly, the lawyer's proposed arrangement with the financing company would allow him to receive a notification when the company disbursed funds to the client. The Opinion concluded that such an arrangement may be permissible subject to several caveats. First, under Rule 1.8(f), a lawyer "shall not accept compensation for representing a client, or anything of value related to the lawyer's representation of

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