An Act providing transparency in third party litigation financing
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
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
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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