The bill introduces new sections (1357.01 to 1357.08) in the Ohio Revised Code to regulate non-recourse litigation funding agreements, while repealing section 1349.55. It defines essential terms related to both consumer and commercial litigation funding, such as "consumer litigation funding agreement" and "commercial litigation financier." The legislation aims to enhance consumer protection by requiring clear and comprehensible agreements, mandating specific disclosures about terms and charges, and allowing consumers a cancellation period of ten business days post-funding. It also emphasizes the need for attorneys to acknowledge their roles and ensure compliance with the agreements, classifying violations as unfair or deceptive practices.

Furthermore, the bill establishes ethical standards for litigation funding companies, prohibiting practices such as paying referral fees to attorneys or healthcare providers and making misleading advertisements. It requires companies to provide copies of funding agreements promptly and places a lien on the proceeds of legal claims funded by these agreements, which takes precedence over other liens unless legally authorized. The bill also outlines attorney responsibilities regarding the disclosure of funding agreements, states that these agreements are subject to discovery but presumed inadmissible as evidence, and restricts agreements with foreign entities to protect due process rights. The Attorney General is empowered to seek equitable remedies against violators, reinforcing the enforcement of these new regulations.

Statutes affected:
As Introduced: 1349.55