Under what circumstances can a lawyer acquire an interest in litigation?

A lawyer can acquire an interest in litigation primarily through a contingent fee agreement or by using an attorney lien. A contingent fee agreement is structured such that the lawyer's payment is dependent on the outcome of the case. This means that the lawyer has a financial stake in the litigation, which aligns their interests with those of the client. An attorney lien, on the other hand, allows a lawyer to secure payment for services rendered by claiming a legal right to part of any recovery obtained in the litigation.

These methods are specifically designed to align the interests of the attorney and the client, while also being compliant with ethical guidelines. Properly structured contingent fee agreements are permissible under the rules of professional conduct, ensuring that clients are informed about the terms and understand how fees will be determined based on the success of their case.

While obtaining client consent, whether verbal or otherwise, can be relevant in discussions about representation and fee arrangements, it does not in itself permit a lawyer to acquire an interest in litigation unless those interests fall within the constructs of a contingent fee agreement or an attorney lien. Profitability of the litigation is not a legitimate basis for a lawyer to create an interest; the ethical rules focus more on transparent agreements and protecting client interests rather than the potential financial gain from the