House Bill No. 432 aims to amend existing laws regarding third-party litigation financing in Louisiana. The bill introduces new provisions that limit the recovery amounts for litigation financers, stating that they cannot receive more than the share of proceeds recovered by plaintiffs after deducting attorney fees and costs. Additionally, it mandates that attorneys who enter into litigation financing agreements must disclose the existence of these contracts to their clients and provide a copy within 30 days of being retained or entering into the agreement, whichever comes first.

The bill also clarifies that the new regulations do not apply to nonprofit legal organizations that provide pro bono services, ensuring that these organizations are not required to disclose their funding sources or donor information. The amendments to R.S. 9:3580.13 include the re-enactment of subsections B and C, the addition of new subsections D and E, and the deletion of previous language that is no longer applicable.

Statutes affected:
HB432 Original: 9:13(B)
HB432 Engrossed: 9:13(B)