Attorneys: corporate legal funders.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill prohibits corporate investors from interfering with or controlling litigation decisions made by attorneys. It aims to prevent nonlawyers from exerting undue influence over legal strategy and outcomes, safeguarding the integrity of the judicial process. Specifically, it prohibits corporate investors from directing litigation functions or entering contracts that would enable such interference, while allowing for nonrecourse litigation finance under specific conditions. Violations may result in disciplinary action against attorneys and monetary penalties for clients.
Key provisions
- Prohibits corporate investors from interfering with or controlling litigation decisions.
- Defines ‘corporate investor’ and ‘control’ for the purposes of the law.
- Outlaws contracts that would enable corporate interference or control over litigation.
- Allows for nonrecourse litigation finance under strict conditions.
- Specifies that violations are not criminal offenses.
- Establishes penalties for violations, including statutory damages and attorney fees.
- The provisions apply to contracts entered into on and after January 1, 2027.
- Defines terms related to the bill's provisions.
Who is affected
- Attorneys
- Corporate investors
- Law firms
- Litigation funders
- Clients involved in litigation
Notable changes
Bill text
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