Working With Your Attorney on Pre-Settlement Funding

Your attorney plays a central role in every pre-settlement funding agreement. Understanding their role protects your case and ensures ethical compliance.

Your attorney is required to review any pre-settlement funding agreement before you sign it. They will confirm that the funding arrangement does not interfere with their representation, that the terms are fair and clearly disclosed, and — depending on jurisdiction and court requirements — whether the funding must be disclosed to opposing counsel or the court. Most attorneys can complete this review within one to two business days.

A critical point: you control all case decisions. The funder has no role in case strategy, settlement negotiations, or litigation decisions. Funders are contractually prohibited from influencing the direction of your case. Your attorney's fee arrangement with you is entirely unaffected by the advance.

The ethical framework governing this is well established. ABA Model Rule 1.8(e) governs attorney financial assistance to clients; third-party litigation funding is expressly distinct from that rule and is permitted. ABA Formal Opinion 484 (2019) provides detailed guidance on attorney obligations when clients use litigation funding, including disclosure considerations and document review obligations.

Practically: your attorney will receive the funding agreement directly from the funder, review it, sign off indicating they are aware of the arrangement, and retain a copy in your case file. Repayment instructions are included in the settlement closing documents your attorney prepares. You are never responsible for writing a check or making a payment — the attorney handles all repayment logistics at closing.

Source: ABA Formal Opinion 484 (2019) — Lawyer's Obligations When Clients Use Litigation Funding. ABA Model Rule 1.8(e) — Conflict of Interest: Current Clients, Financial Assistance.

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