During the 2017 annual meeting of The Florida Bar, the Professional Ethics Committee began considering whether litigation cost protection insurance coverage may be considered an expense of litigation to be borne by the client. After robust discussion the Committee voted to refer the matter to a special subcommittee because the Committee’s decision will be a first-of-its-kind in the United States.
The Committee will not address whether litigation cost protection insurance is a good idea or whether the terms of coverage are adequate. Instead, the sole question for the Committee is whether a lawyer who purchases litigation cost protection coverage may obtain reimbursement of the premium cost from the client in the event of recovery by settlement or judgment.
The ethics rules implicated are Rules 4-1.5 and 4-1.8(e), Rules Regulating The Florida Bar, and perhaps others.
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