Best Practices in Litigation Finance:
Law Firm Guide to Client-Directed Funding (2025)

Overview

The legal landscape is evolving, and with it, the ways in which litigation
is financed. This whitepaper provides law firms with a comprehensive
grounding in the ethical and practical considerations surrounding
client-directed litigation funding. Here, we explore the nuances of this
practice, where clients secure funding from third parties for their legal
matters, and offer guidance on how law firms can best navigate this
complex terrain.

From establishing robust internal policies and communication protocols
to managing post-funding relationships and mitigating potential
conflicts, this guide equips law firms with the knowledge and tools
necessary to effectively and ethically represent clients who utilize
litigation finance. By embracing best practices and proactive strategies,
law firms can confidently navigate the complexities of client-directed
funding, ensuring compliance with ethical obligations while providing
optimal representation and achieving the best possible outcomes for
their clients.