Are you a personal injury (PI) lawyer who relies on receiving cases from other law firms, only to find yourself covering case costs through a fee split? This practice has been crucial for many newer law firms, offering a lifeline during the initial stages of building their practice by bringing in cases that other firms don’t want to litigate. In such arrangements, a common scenario involves a 60/40 split, with the receiving firm shouldering the responsibility of covering case expenses.

While many law firms view this arrangement as a positive contribution to their business, a closer examination reveals potential flaws in the underlying business model. Consider this: by accepting cases from other firms, you essentially provide the referring firms clients with interest case costs, tying up your own capital for a period ranging from one to three years. This money, which could otherwise be utilized for the growth of your own firm, becomes invested in cases where you may also be putting your own funds at risk. The crux of the matter is that, despite these drawbacks, you are only entitled to a 60% share of the contingency fee, not the full 100%.

Upon closer scrutiny of law firms’ business models, this structure appears to be a common practice, often without a full awareness of its potential negative impact on the growth of their own firms. If you’re interested in exploring an innovative solution to address these challenges, we invite you to learn more about Capital Financing’s Case Expense program. Feel free to reach out to us at or visit our website at for further information.