Tuesday, July 6, 2010

Beware of Funding Agreements That Your Client Never Told You About.

Believe it or not, there are actually funding companies out there who will do deals with your client; but will not require a signature from you, the attorney. My funding practice is that I get 99% of my deals from the attorney so I know the source of the deal at all times.
So getting back to these funding companies who don't require attorneys' signatures...this is a real two-edge sword for them. On the one hand the attorney can't step in and obstruct a "bad deal". On the other hand, the attorney may not know about the funding at the time of settlement. Either way it's a mess!
Moral of the story, grill your client about existing funding agreements like you would about prior and subsequent accidents. Who knows; you might learn of a bad deal, bring it to my attention and I can step in and refinance and consolidate the prior fundings.

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