H1861
An Act providing transparency in third party litigation financing
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill aims to increase transparency surrounding third-party litigation financing, where outside companies pay legal claims in exchange for a share of any settlement or judgment. Currently, there are limited rules governing how these financing arrangements are disclosed, potentially impacting fairness and due process. The bill seeks to establish requirements for disclosing these arrangements to courts and opposing parties. It intends to ensure that all parties involved in litigation are fully aware of the financial interests of those funding the legal action.
Key provisions
- Requires third-party litigation funders to disclose their involvement in a case.
- Mandates disclosure of the terms of the financing agreement.
- Establishes a process for courts to review and potentially limit the impact of third-party funding.
- Defines ‘third-party litigation financing’ for the purposes of the law.
- Specifies the information that must be included in disclosure.
- Addresses potential conflicts of interest arising from third-party funding.
- Creates a reporting mechanism for funders to the court.
- Requires funders to provide information about their investment strategy.
Who is affected
- Litigants
- Attorneys
- Courts
- Third-party litigation funders
- The legal industry
Notable changes
- Introduces regulations for third-party litigation financing.
- Addresses the lack of transparency in these arrangements.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Adrian C. Madaro
Cosponsor
Adrian C. Madaro
Arguments in favor
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Bill H.1861 194th (Current)
An Act providing transparency in third party litigation financing
By Representative Madaro of Boston, a petition (accompanied by bill, House, No. 1861) of Adrian C. Madaro relative to third party litigation financing. The Judiciary.
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Bill Information
Bill Information
Presenter: Adrian C. Madaro
Tabs
Bill History Petitioners Committee Vote Committee Summary Hearing Attendance
Bill History
Displaying 8 actions for Bill H.1861
| Date | Branch | Action |
| 2/27/2025 | House | Referred to the committee on The Judiciary |
| 2/27/2025 | Senate | Senate concurred |
| 7/16/2025 | Joint | Hearing scheduled for 07/29/2025 from 01:00 PM-05:00 PM in A-2 |
| 7/29/2025 | Joint | Hearing rescheduled to 07/29/2025 from 01:00 PM-06:00 PM in A-2 and Virtual Hearing updated to New End Time |
| 7/29/2025 | Joint | Hearing rescheduled to 07/29/2025 from 01:00 PM-05:10 PM in A-2 and Virtual Hearing updated to New End Time |
| 10/20/2025 | Joint | Hearing scheduled for 07/29/2025 from 01:00 PM-05:10 PM in A-2 |
| House | Reported by committee to Clerk’s Office for processing, will accompany a study order | |
| 3/26/2026 | House | Accompanied a study order, see H5281 (under House Rule 27) |
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