Litigation Transparency Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the Litigation Transparency Act of 2025, aims to increase transparency in civil lawsuits by requiring parties to disclose the identity of any third-party beneficiaries who could receive payments based on the outcome of the case. It also mandates the production of agreements creating these contingent rights for inspection. The law focuses on ensuring that all parties involved in a civil action are aware of potential third-party beneficiaries and their rights.
Key provisions
- Parties must disclose third-party beneficiaries to the court and other parties in the lawsuit.
- Parties must produce agreements creating contingent rights for inspection.
- Disclosure requirements apply to agreements where payment is contingent on the lawsuit's outcome.
- Exceptions exist for simple loan repayments with limited interest.
- Disclosures must be made within 10 days of an agreement or the filing of the lawsuit.
- Parties must correct disclosures if they become incomplete or incorrect.
- The law applies to civil actions filed after the bill’s enactment.
Who is affected
- Parties in civil lawsuits
- Attorneys representing parties in civil lawsuits
- Third-party beneficiaries in civil lawsuits
- Courts involved in civil litigation
- Legal professionals
Notable changes
Bill text
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Sponsors
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29 on record
Primary sponsor
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