In the News Today - August 9, 2018

August 09, 2018

Lawsuit Reform is Key Ingredient for Arkansas’ Future: Arkansas Lt. Gov. Tim Griffin argues that the hidden costs of an outdated legal system are standing in the way of economic growth and jobs for Arkansans. Griffin points to Texas as an example of a state that managed to turn around its dysfunctional legal system, unlocking billions of dollars in growth and nearly half a million jobs in the process. The Lt. Gov. calls on Arkansans to follow that example, and to vote “Yes” on Issue 1 in November, a constitutional amendment that would cap punitive damages awards at $500,000 or three times the amount of compensatory damages awarded. (Talk Business & Politics)

Lawyer-Lender Fee Deals An Ethics Breach, NYC Bar Says: In an opinion set to have significant consequences for the legal finance industry, the New York City Bar Association’s Professional Ethics Committee has stated that lawyer-lender financing deals in which repayments by attorneys are pegged directly to legal fees violate the Association’s ethics rules. The Committee cited an early 1980s decision holding that such repayment arrangements are unethical with regard to providers of goods and services; the Committee sees “no meaningful distinction” between those providers and financiers. (Law360)