The bill introduces new regulations for non-recourse litigation funding agreements in Ohio, specifically targeting both consumer and commercial litigation financing. It establishes definitions for key terms such as "consumer litigation funding agreement" and "commercial litigation financier," and mandates that consumer litigation funding companies provide clear agreements that include essential disclosures like the funded amount and itemized charges. Consumers are granted the right to cancel agreements within ten business days without penalty, and the agreements must be reviewed by the consumer's attorney to ensure there are no conflicts of interest. Additionally, the bill prohibits companies from paying referral fees to attorneys or healthcare providers, making misleading advertisements, and influencing legal claims or settlements.

To enhance consumer protection, the bill repeals section 1349.55 of the Revised Code, which previously governed aspects of litigation funding. It emphasizes transparency and consumer rights, aiming to prevent exploitation in litigation funding arrangements and uphold public policy against champerty and maintenance. The bill also outlines attorney responsibilities regarding the disclosure of funding agreements, establishes that these agreements are subject to discovery in civil proceedings (though presumed inadmissible as evidence), and restricts funding agreements with foreign entities to protect due process rights. The Attorney General is empowered to seek equitable remedies against violators, further reinforcing the bill's intent to create a fairer environment for individuals seeking financial assistance in legal claims.

Statutes affected:
As Introduced: 1349.55