Litigation Loans Resources

 

Missouri Supreme Court Rules
Formal Opinions
Informal Opinions
Frequently Asked Questions
Requesting an Informal Advisory Opinion   

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Missouri Supreme Court Rules:

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Formal Opinions:

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Informal Opinions:

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Frequently Asked Questions:

  • QUESTION: What factors should a lawyer consider when a client is considering securing a loan against the proceeds of litigation?
  • ANSWER: A lawyer should not assist a client in an arrangement or transaction involving champerty.  A lawyer’s participation in a champertous transaction, including a lawyer’s agreement to disburse settlement or judgment proceeds to the lender, violates Rule 4-8.4(d) as conduct prejudicial to the administration of justice.  See Informal Opinion 20050062, Informal Opinion 20030022, and Informal Opinion 20000229.  Rule 4-1.8(e) prohibits a lawyer from providing financial assistance to a client in connection with litigation except under certain circumstances.  See Formal Opinion 119 and Formal Opinion 125. In advising a client about the client’s securing of a litigation loan, a lawyer’s duties of competence (Rule 4-1.1) and diligence (Rule 4-1.3) may require the lawyer to advise the client about issues including, but not limited to, the impact of any requirement by the lender that the client disclose confidential information; any need for a confidentiality agreement with the lender; and the lawyer’s obligation pursuant to Rule 4-1.15(e) if lender and client both claim an interest in the same settlement funds or other proceeds of the litigation.

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Requesting an Informal Advisory Opinion:
Missouri attorneys may request an informal advisory opinion from the Legal Ethics Counsel.  Guidelines for requesting an informal advisory opinion, in writing or by telephone, can be found here:

Requesting an Informal Advisory Opinion

The Office of Legal Ethics Counsel may be reached by telephone at 573-638-2263.