Litigation Funding Transparency: Who Profits from Lawsuits?
This new law requires disclosure of who is financially backing lawsuits if they stand to gain from the outcome. It aims to increase transparency in courts by revealing whether third parties have a financial interest in the resolution of a dispute. Citizens may gain greater awareness of hidden interests in legal cases.
Key points
Parties in civil lawsuits must disclose the identity of individuals or companies entitled to receive payments or benefits contingent on the case's outcome.
Agreements related to such funding must be produced for inspection.
Exceptions to disclosure include standard loans with interest up to 7% or twice the Treasury yield, and reimbursement of attorney's fees.
Disclosures must be made within 10 days of agreement execution or at the time of filing the action, and updated if information changes.
Introduced
Citizen Poll