Compare a contingent-fee or litigation-funding agreement with the rules that govern it
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- Extract the percentage, the expense waterfall, who controls settlement, and any funder’s repayment terms into a table. Write nothing into the agreement.
- What the lawyer must review
- A contingent fee must be in a writing signed by the client and must state the method of calculation, including percentages on settlement, trial or appeal, whether expenses come off before or after the fee, and the expenses the client pays even if there is no recovery (Rule 1.5(c)). On conclusion the lawyer provides a written statement of the outcome and, if there is a recovery, the remittance. Rule 1.5(d) bars a contingent fee for securing a divorce or for representing a criminal defendant. There is no national litigation-funding statute. In the District of New Jersey, L. Civ. R. 7.1.1 requires a filed statement only where third-party litigation funding exists; a negative statement is not required. The lawyer opens the forum’s local rule and the state’s professional-conduct rule before treating any other court as if the New Jersey rule applied.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Potential support includes extracting and organising information. Confirm the tool’s capability and permitted scope. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm that the wording reflects the client’s instructions and contains no unintended admission, concession or commitment. Check the recipient and tone.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| Statement disclosing third-party litigation funding (United States) | Court document | AI use Red | A lawyer's decision note and a short statement for a case in which a non-party funds fees or expenses on a non-recourse basis. |
Signed-in accounts can read the full text of each one. All precedents.