Should Trial Attorneys Use Alternative Litigation Finance via Texas Lawyer

Trial attorneys, especially contingent-fee-based attorneys, often are exposed to large litigation costs. The large, case-related costs create a problem for contingent-fee attorneys because the attorneys absorb the financial risk and front their clients’ case-related expenses. Additionally, contingent-fee attorneys do not get paid unless their client’s case is successfully adjudicated or settled. Contingent-fee agreements can create monetary problems for a law firm because the more successful the attorney or firm, the more cases the firm has to finance. When you add the risk component of an unsuccessful verdict or outcome, it becomes clear that with all of the benefits a contingent fee provides to a client, contingent agreements present significant disadvantages for attorneys and law firms. Therefore, attorneys are looking for financing options previously unavailable to them.

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