This bill mandates the disclosure of third-party litigation funding agreements in civil actions and outlines specific responsibilities for litigation funders. It requires that parties or their attorneys disclose any litigation funding agreements to the court and all involved parties without waiting for a discovery request. The disclosure must include all relevant correspondence and documents at the time of filing an initial pleading or when the agreement is made. Amendments to these agreements must also be disclosed promptly. The bill allows for sanctions against parties that fail to comply with these disclosure requirements and clarifies that contingent fee agreements between a party and their legal representative do not need to be disclosed.

Additionally, the bill establishes a fiduciary duty for litigation funders towards the parties they fund, ensuring that funders act in the best interests of the funded parties. It prohibits funders from interfering in the civil action, such as influencing decisions or providing legal advice, and limits their financial recovery to a maximum of 25% of the litigation proceeds without express consent from the funded party. If a funder violates these provisions, the funding agreement becomes unenforceable, and such violations are classified as unfair or deceptive practices under New Jersey law. The bill aims to enhance transparency and protect the rights of parties involved in civil litigation.