The bill introduces new sections (1357.01 to 1357.08) to the Ohio Revised Code that establish regulations for non-recourse litigation funding agreements, while repealing section 1349.55. It defines essential terms such as "consumer litigation funding agreement," "commercial litigation financier," and "charges," aiming to create clear, transparent, and fair agreements for consumers. Key provisions include requiring specific disclosures, allowing consumers to cancel agreements without penalty within a designated timeframe, and mandating that agreements be written in understandable language. Attorneys involved must acknowledge their role and ensure compliance with the terms, with violations classified as unfair or deceptive practices, thus providing consumers with legal recourse.

Additionally, the bill prohibits litigation funding companies from paying referral fees to attorneys or healthcare providers, mandates prompt provision of funding agreements, and prevents companies from influencing legal claims or settlements. It outlines unlawful actions, such as charging excessive fees and entering agreements with consumers who have already assigned their rights to legal claim proceeds. The bill also requires consumers to disclose any funding agreements to relevant parties and ensures these agreements are subject to discovery in civil proceedings. Furthermore, it prohibits foreign entities from engaging in litigation financing within Ohio, with the Attorney General empowered to enforce these regulations and seek remedies against violators.

Statutes affected:
As Introduced: 1349.55