House Bill No. by Representative Chenevert amends existing law regarding third-party litigation financing by introducing new provisions aimed at enhancing transparency and limiting the recovery amounts for litigation financiers. The bill stipulates that a litigation financer cannot receive more than the share of proceeds recovered by plaintiffs after deducting attorney fees and costs associated with the legal action. This change is intended to protect plaintiffs from excessive financial claims by litigation financiers.

Additionally, the bill mandates that attorneys who enter into litigation financing contracts must disclose the existence of these agreements to their clients and provide a copy within 30 days of being retained or entering into the agreement, whichever comes first. The legislation also clarifies that it does not apply to nonprofit legal organizations that represent clients pro bono, ensuring that such organizations are not required to disclose their funding sources. Overall, the bill aims to promote fairness and transparency in litigation financing practices.

Statutes affected:
HB240 Original: 9:13(B)