For Attorneys

Why You Cannot Simply Help the Client Yourself

Every personal injury lawyer has had the call. The client cannot make rent, the case is nowhere near resolution, and the obvious human response is to help. The rule says otherwise.

Michigan Rule of Professional Conduct 1.8(e) prohibits a lawyer from providing financial assistance to a client in connection with pending or contemplated litigation. The exceptions are narrow: you may advance court costs and the expenses of litigation, with repayment ultimately the client's responsibility, and you may pay costs and expenses outright for an indigent client. An amendment effective May 2024 added a limited humanitarian exception in pro bono matters, covering transportation, lodging, meals and clothing.

What the rule does not permit is advancing a fee-paying client the money to cover a mortgage payment, a car repair or groceries while the case runs. That gap is precisely where third-party funding sits — and it is why this exists as a separate business rather than something you could handle in-house.

What I Ask of You

Very little, and nothing that costs you time you do not have:

• Confirm the case exists and is active. I need to understand liability, the injury and the realistic range — the same assessment you have already made.
• Sign an acknowledgment. Repayment comes out of the settlement you distribute, so the arrangement has to be on your file. I will not fund a client of yours without it.
• Pay the agreed amount at distribution. After your fees, costs and any liens. Your client is not asked to make payments while the case is open, and neither are you.

There is no retainer, no fee to you, and no obligation created on the firm. If the case is unsuccessful, nothing is owed by anyone — the loss is mine.

Protecting the Case You Are Building

The legitimate worry about funding is not the cost. It is whether an advance changes how a client behaves at the moment you are trying to settle.

I take two positions on that, and they are commitments rather than marketing. I will never fund a client of yours without your specific approval and consent. And I will never advance so much against a case that the client loses the incentive to settle at a figure you consider appropriate and reasonable. A funder who advances past that point has damaged the case they are relying on, which is a poor way to run this business and a worse way to treat your client.

I also underwrite every file personally. I have practised Michigan personal injury law since 1977, which means the person assessing your client's claim has tried cases in the courts where yours is pending and does not need the posture of a no-fault threshold dispute explained. More than 250 Michigan injury lawyers refer clients to me on that basis.

Funding for the Firm, Not Just the Client

Client advances are one half of it. Depositions, expert fees and trial preparation all have to be carried by the firm, sometimes for years, and a case that is going well can still be difficult to finance.

I also fund law practices directly — against settled cases awaiting disbursement, or against the costs of preparing a case for trial. That is a different product with different terms, and it is set out at attorney litigation funding.

Referring a Client

The fastest route is a phone call rather than a form. Call (248) 353-8830 and we can establish in a few minutes whether the case is fundable, roughly what the advance would be, and what it would cost your client at distribution — before anyone fills in paperwork.

If your client would rather make the first call themselves, that is fine too; they can apply here and I will contact you before anything is agreed. You may also want to see how the pricing works or the case types I fund.