Senate Bill 705 introduces regulations concerning nonrecourse civil litigation advances and prohibits certain foreign entities from financing civil litigation in Wisconsin. The bill defines a nonrecourse civil litigation advance as a transaction where a company provides cash to a consumer involved in a pending dispute, with repayment contingent on the proceeds from any settlement or judgment. Key provisions include requirements for a written contract, limitations on finance charges, a cap on the amount advanced, and stipulations regarding prepayment and disclosures. Companies that violate these regulations face civil forfeitures ranging from $25 to $5,000, and if violations are willful, they cannot recover the advance or finance charges from the consumer.

Additionally, the bill prohibits parties in civil actions and their attorneys from receiving funding for litigation costs from foreign sources, including foreign states and citizens, as well as agents of foreign principals. If a court finds a violation of this prohibition, it may impose forfeitures equivalent to the amount of funding received in violation of the law. The bill aims to protect consumers and ensure the integrity of civil litigation financing in Wisconsin.

Statutes affected:
Bill Text: 138.04