It should be unlawful to loan money when any part of the repayment of the loan is contingent on the outcome of litigation.

–This would prohibit lawyers from paying court costs and other fees to sustain litigation for clients. It would also prohibit lawyers from “advancing” the cost of higher experts to their clients.

–This would prohibit “litigation loans” from any source

Limit on the amount of any contingent fee

–Contingent fee cannot be greater than 1 ½ times the hourly rate of the highest paid defense attorney working on the case.

This combination of reforms would reduce the probability that lawyers would advance questionable or frivolous claims in hopes of “winning the lottery.”  It would not affect the ability of plaintiffs who suffered legitimate injury to be fully compensated for the injury.  Nor would it affect the ability of the court system to encourage responsible behavior through the imposition of exemplary and / or punitive damages.


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