Debunking the Assumption That Law Firms Must Cover Client Case Expenses

Many contingency firms front case expenses because they believe it’s required—or simply because it’s how things have always been done. But no bar association or ethics rule mandates that lawyers personally finance their clients’ case costs.

This tradition persists because many plaintiffs don’t have the resources to cover litigation costs themselves, and law firms are invested in building a strong case. But as litigation becomes more complex—and more expensive—it’s worth asking:

Is there a better option—or practical—for law firms to keep bearing all the financial risk?

Legal finance experts agree: there are compliant, ethical ways to shift this burden while continuing to serve clients effectively.

Key Takeaways:

  • There’s no fiduciary duty requiring law firms to fund case costs
  • Non-recourse financing doesn’t affect case control or client outcomes
  • Case expense financing is not “lending to clients” — it’s a strategic financial tool for the firm

Law firms don’t need to “be the bank” to serve their clients. The profession is evolving, and so should the financial strategy behind legal
practice.

👉 For more about how this works in practice, contact Capital Financing at 404-348-4475 or info@injuryfinancing.com