Funder Referral Program (FRP)
If so, you should know about Dovel & Luner’s Funder Referral Program (“FRP”).
Sometimes, good matters come across your desk that do not have a law firm attached, that you cannot fund for reasons unrelated to the merits, including:
- Economics: The budget amount relative to the damages does not support your required funding ratio (e.g., 10 x 1 damages to budgeted deployment ratio);
- Funding mandate: The claim type is outside your fund’s directive (e.g., class actions);
- Diversification: Your portfolio may be overly concentrated (e.g., with the same law firm; against the same defendant; in the same venue; or in a particular class of cases);
- Funding cycle: You may not have funds immediately available based on your funding cycle—but the matter is time-sensitive (e.g., there is a statute of limitations issue);
- Structure: Single-case funding is unavailable due to structural concerns (e.g., existing creditors would only subordinate to an attorneys’ contingency fee);
- Working Capital: The client requested financing for both legal expenses and working capital, and providing both would exceed your desired commitment level.
So, instead of passing the opportunity along to a competing funder or broker, our FRP allows you to potentially generate fees in the range of 10% to 20% of the attorneys’ fees recovered by referring the matter to us to litigate on a full contingency.
Depending on ethical rules governing our relationship, we could be able to either:
- provide you a referral fee directly (e.g., a 20% referral fee that we offer referring law firms); or
- work with an Arizona law firm that could ethically share a referral fee with you.
We have template documents and an ethics opinion approving our FRP program.
Let me know if you have a matter that we can evaluate for our FRP.