What Your Attorney Does
- Verifies case facts. Provides the funder with the documents needed to evaluate liability and damages.
- Reviews the agreement. Reads the funding contract and explains the payoff schedule.
- Acknowledges the lien. Signs an acknowledgment that the funder will be paid from settlement proceeds.
- Handles disbursement. When the case settles, pays the funder before distributing the rest.
What Your Attorney Does Not Do
- Recommend a specific funding company (though many will share who they've worked with).
- Promise the funder anything about the case outcome.
- Give the funder authority over your case strategy.
Why Attorneys Cooperate
Funding can save a client's case. A plaintiff who can pay rent can hold out for a fair settlement; one who can't will accept the first offer that hits the table. Attorneys see this dynamic constantly.
Will My Attorney Get a Kickback?
No. Ethical rules in most jurisdictions prohibit attorneys from receiving compensation for referring clients to funders. If a funder offers your attorney a referral fee, that is a red flag.
What If My Attorney Discourages Funding?
Listen. Sometimes they know the case is days from settling, or that the math doesn't work, or they've had bad experiences with specific funders. Ask them why. Their advice is unbiased — they don't earn anything from the funder either way.
Sources & Further Reading
For broader context, see American Bar Association — Model Rules of Professional Conduct. This article is general educational information and does not constitute legal or financial advice.
Frequently Asked Questions
Your attorney acknowledges the agreement and the lien — typically on a separate signature page — but the funding contract itself is between you and the funder.
Generally no. The lien follows the case. Notify both your old and new attorneys, and the funder, of the change.