Alternative Litigation Finance, Part II: The Ethical Do’s and Don’ts: Best Practices When Clients Finance Fiduciary Litigation
In Part 1 of this article in the September/October issue, the authors discussed a common problem among trust and estate litigators—the difficulty in getting paid. For a variety of reasons intrinsic to this practice, consistent monthly bill payment can be a particular challenge for trust and estate attorneys. Part 1 also discussed a new tool for getting paid timely—alternative litigation finance (ALF).
ALF is an arrangement between the client and a third-party company under which the company funds litigation fees and costs up front in exchange for a fee. Although these companies have existed in the personal injury and commercial litigation fields for decades, it was not until relatively recently that these companies expanded with a focus on trust and estate litigation.