My lawyer handling my case, suggested getting an advance on a pending case, I would not have to repay if I lost the case or if in the end the money from the case was less than I got in advancement.
The same lawyer reviewed the contract and gave the OK to sign.
At one point the lawyer that was never detailed oriented inquired more than once if I was getting ready to pay the loan, when I asked him it was an advance, he said no, it was a loan and if no money came out of the case, the company was going to sue me.
I learned that the lawyer was getting a commission on the “loan”,I do not know details if the commission was based on repayment or not. He won’t answer if he is getting a kick back.
According to him there were loopholes in the contract that may allow this company to come after me for the money.
Prior to signing the lawyer said that companies could not legally lend money in NY with such high return more than 1/3 to 2/3 (depending on how long the case last) of the total advanced to me.
The lawyer is giving me contradictory information regarding previous advises, the money was not a loan, yet he is inducing me to repay ignoring his fiduciary obligations.
I am not a NY lawyer, but this would be a violation of ethical rules governing practice of law anywhere. The loan also sounds like it is probably usurious under NY law (which I haven't read) as such high returns generally are. You could contact the NY Courts attorney grievance committee for the applicable area at: https://www.nycourts.gov/attorneys/grievance/complaints.shtml. You might also seek a consultation with an attorney who deals with attorney ethics. You can find them under the Find a Lawyer tab. I'm changing this to that practice area.
Please note: This answer is not intended and should not be considered as legal advice. Such professional advice requires full disclosure to an attorney of a client’s circumstances and that attorney’s opportunity to analyze those circumstances against applicable law.
There is not enough information here to answer this question.
We would need to examine the agreement and the money trail to determine if this was an inappropriate subsidizing of litigation, or was a permitted advancing of costs and litigation expenses and expert witness fees.
There is a prohibition against a lawyer's taking financial advantage of a client. That aside, there is a prohibition against lawyers advancing fees for the purpose of avoiding frivolous suits that clog the courts. On the other hand, allowing much smaller loans for costs allows for access to justice. Your question appears to fall somewhere between these two extremes. To determine whether there is usury taking place here, we would again need to see the agreement and the money trail.
New York allows separate companies to loan money for litigation expenses. The lawyer can connect the client with such a service, and the loan agreement would be between the loan company and you, the litigant.
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