Requires disclosure of third-party litigation funding agreements and establishes certain responsibilities for litigation funders.
This bill requires parties in civil lawsuits to disclose any third-party litigation funding agreements to the court and all parties at the time of filing or when the agreement is made. It establishes that litigation funders must act in the best interest of the funded party (a fiduciary duty), prohibits them from influencing case decisions or taking more than 25% of settlement proceeds (with a combined 50% cap including attorney fees), and bans them from offering legal advice or assigning funding agreements. Funders become jointly liable for costs or sanctions against the funded party, and agreements violating these rules become unenforceable. The bill directly affects civil case participants and third-party funders by increasing transparency and limiting funders' control over litigation outcomes.
Bill status
in committee
1 of 4 stages cleared
Introduction
Apr 2025
Committee Review
Floor Vote
Governor
Introduced Apr 10, 2025
Last action Apr 10, 2025
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
1
Key actions
0
Committee
0
Apr 10, 2025
Introduced
Introduced in the Assembly, Referred to Assembly Financial Institutions and Insurance Committee
lower
2 primary · 1 co-sponsor
Sponsors
Role
Legislator
Party
State
District
P
Eliana Pintor Marin
DDemocratic
P
Ellen Park
DDemocratic
Co
Bill Spearman
DDemocratic
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