Most people assume everything they tell their lawyer will remain confidential, protected by the attorney client privilege laws. When it comes to dealing with business litigation situations, things might not remain as private as you hope. There’s a chance when it comes to funding, someone could slip up, accidently revealing information that should have remained confidential.
Legal assistance of any kind can be expensive. Business litigation isn’t any different. An increasing portion of the population has started seeking out help when it comes to handling their legal matters, generally from a third party. It’s not unusual for this third part to do so with the understanding of being reimbursed from any settlement or judgment that gets awarded. For example, if a smaller business is suing another business for breach of contract, the financer would receive a portion of whatever settlement the larger business was forced to pay. This type of financing shouldn’t be considered a loan, if the client loses the case; they’re under no obligation to reimburse the third party. That’s where things get sticky.
The financers don’t want to simply through away money, they want to know they’re backing a solid case and can have reasonable expectations of getting the money back. In order to secure the funding, many lawyers and clients reveal more information about the case than they should. Legally, this puts the third party in a bind. While there is lawyer client privilege, technically, no such thing exists for the third part. If they find out about a crime or some other type of wrongdoing and don’t report it, they could find themselves facing obstruction of justice charges.
Business litigation lawyers have discovered that the third party sources becoming increasingly intrusive with regards to the type of information they want. It’s no longer enough to provide the financiers with condensed overview of the case, or even with a summary of recent updates. Some financers have become increasingly intrusive. When the financer speaks to the business litigation lawyer it’s possible they’ll detailed case information. It’s equally possible the prosecution could use the knowledge they gain from this information in order to turn the outcome of the trial.
If you feel yourself in need of a business litigation lawyer, you will want to think about your funding options. If you can afford it, you should fund the process yourself, that will keep the lines clearly drawn. If you feel there no other recourse by to find a third party recourse, you and your business litigation lawyer need to sit down and discuss exactly what can and can’t be discussed with the financers. You need to make your limitations equally clear to the financers, tell them the outcome of the case depends on your discretion. If they don’t accept this simple truth, you’ll have to continue looking until you find a financer who does.
Be the first to like.