Michael Gottesman, ESQ.
If you were disappointed by the Florida Bar Board of Governor’s November 8, 2021 decision to reject the proposals for non-lawyer ownership of law firms, you are not alone. Many small to mid-size law firms were hopeful that infusions of equity by non-lawyer investors would be a solution to uneven cash flows, the need for capital to grow a practice area, and the rising costs of running a law firm business.
As employee wages and the prices of technology increase, and the out-of-pocket expenses of fact discovery and expert fees steadily creep up, it is becoming more expensive to run a law firm and represent clients effectively. The COVID crisis has compounded the problem by expanding the “durational risk” of a lawyer’s portfolio of cases: the risk that cases go on too long, and don’t get resolved in a time-efficient manner.
After several years litigating a case against a deep-pocket insurance company, even the most dedicated attorneys find the pursuit of justice to be financially burdensome.
If this describes obstacles you are facing at your law firm, you should consider legal funding as an option to provide the capital necessary for your firm’s success. As observed by Eileen Bransten, the former New York Supreme Court Justice: “Litigation funding allows lawsuits to be decided on their merits, and not based on which party has deeper pockets or stronger appetite for protracted litigation.” Legal funding can provide you with the money you need to cover your operating expenses even if cash flows are uneven, the litigation expenses on your cases are mounting, and the durational risk on your matters is higher than expected. Instead of non-lawyer equity owners in your law firm, you can have a solid partner in the form of a legal funder.
Let Cartiga help drive your legal success story. Visit Cartiga.com to learn more.