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Ethics/Professional Responsibility

Nov. 9, 2026

AB 2039 and the cost of carrying a case: California's new interest ban raises novel ethics questions

AB 2039's prohibition on charging clients interest leaves an unsettled question: May lawyers pass through actual third-party financing costs, or must they absorb the expense of funding litigation?

Heather L. Rosing

Founding Partner
Rosing Pott & Strohbehn

Legal Malpractice (Specialist), Business Law

501 W Broadway, A380
San Diego , CA 92101

Phone: (619) 990-5566

Email: hrosing@rosinglaw.com

Northwestern Univ School of Law

Heather serves as the chairperson of the Legal Ethics and Law Firm Risk Management Practice Group, as well as the Lawyers and Accountants Practice Group. She is an appointed advisor to the State Bar of California's Rules Revision Commission.

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David M. Majchrzak

Partner
Rosing Pott & Strohbehn

Litigation, Legal Ethics

501 W Broadway A380
San Diego , CA 92101-3584

Email: dmajchrak@rosinglaw.com

Thomas Jefferson School of Law

David practices in the areas of legal ethics and litigation of professional liability claims.

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Susie Dent

Rosing Pott & Strohbehn LLP

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AB 2039 and the cost of carrying a case: California's new interest ban raises novel ethics questions
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Recently, Gov. Gavin Newsom signed Assembly Bill 2039 into law, significantly reinforcing California's prohibition on capping and broadening regulation of financial advances between lawyers and clients. The legislation followed years of significant public scrutiny surrounding improper solicitation and financial arrangements in high-value claims. The statutory fix, however, may come with unexpected costs of implementation.

Business and Professions Code section 6149.6, enacted by...

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