Legal Question in Legal Ethics in California

If a lawyer was going to take on a class action lawsuit but needed money to cover his expenses to get started, would it be illegal for him to take money from people not involved in the case...in exchange for a percentage of his potential fees/earnings if he wins the case?


Asked on 2/08/11, 2:32 pm

2 Answers from Attorneys

Only if they were lawyers, because it is illegal for lawyers to share fees with non-lawyers except as part of a qualified employee profit sharing plan. Even with only lawyers fronting the money he would have to very, very carefully structure it in order not to create an illegal fee-splitting arrangement.

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Answered on 2/08/11, 5:51 pm

Clarification: it would be LEGAL only if they were lawyers. It would be illegal otherwise.

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Answered on 2/09/11, 1:47 pm


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