What If My Lawyer Says No to Pre-Settlement Funding?

Your attorney's cooperation is required for the funding to proceed. If your attorney objects, understanding the reason is the first step — some concerns are addressable, others are not.

Attorney cooperation is a functional requirement of pre-settlement funding. Funders need to contact your attorney to review the case, obtain case documentation, and have the attorney acknowledge the funding arrangement in writing. If your attorney refuses to cooperate, funding cannot proceed — even if you personally wish to apply.

Attorney objections fall into several categories. Some attorneys have ethical concerns about third-party funding in principle — a position that is becoming increasingly rare as the product has been normalized and addressed in ABA guidance. Some have practical concerns about the cost structure, particularly if they believe the case will resolve quickly and the funding cost will be disproportionate. Some have had negative experiences with specific funders in the past.

If your attorney objects, ask them to explain specifically what the concern is. If it is about cost, ask your attorney to model the repayment at different settlement timelines so you can evaluate whether the advance makes economic sense for your situation. If it is about a specific funder's practices, you may be able to address the concern by selecting a different funder with a better reputation.

If your attorney objects on principle and is unwilling to discuss alternatives, this is a significant obstacle. You cannot obtain funding without attorney participation, and you should not attempt to apply without your attorney's knowledge. In extreme cases where your attorney's refusal is creating financial hardship that affects your ability to maintain your case, consult with a different attorney about your overall legal strategy.

Source: ABA Formal Opinion 484 (2019) — Lawyer Obligations When Clients Seek Litigation Funding.

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