The bill establishes new regulations for non-recourse litigation funding agreements in Ohio by enacting sections 1357.01 through 1357.08 of the Revised Code and repealing section 1349.55. It introduces definitions for key terms such as "consumer litigation funding agreement," "commercial litigation financier," and "charges," while outlining requirements for these agreements to enhance clarity and consumer protection. Notably, the bill mandates that agreements must be written in clear language, include specific disclosures, and allow consumers to cancel the agreement within ten business days without penalty. It also emphasizes the role of attorneys in the funding process, requiring their acknowledgment of the agreement and ensuring they are compensated on a contingency basis.

Additionally, the bill prohibits companies from paying referral fees to attorneys or healthcare providers, mandates the prompt supply of funding agreements to consumers and their attorneys, 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 proceeds from a legal claim. The legislation also requires consumers to disclose any litigation 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 the state, aiming to protect due process rights. The Attorney General is granted the authority to enforce these regulations and seek equitable remedies against violators.

Statutes affected:
As Introduced: 1349.55