One of the hot topics in the litigation arena these day is the question of whether or not litigants should be obliged to disclose their litigation funding arrangements to opposing parties. Indeed, as discussed here, last month three U.S. senators introduced a bill to require litigation funding arrangements to be disclosed in class action litigation and multidistrict litigation. One of the arguments raised in favor of this type of disclosure is that under the Federal Rules of Civil Procedure defendants are already required to disclose to opposing parties at the outset of the case their insurance coverage information.  In an interesting June 11, 2018 Law 360 article entitled “Claimants Shouldn’t Be Forced to Disclose Litigation Funding” (here), Matthew Harrison and John Harabadian of Bentham IMF litigation funding firm challenge the parallels that are usually drawn in this context between discovery of insurance and discovery of litigation funding arrangements, arguing that while this comparison is “superficially appealing,” the two types of disclosures “are far different by nature.”
Continue Reading Litigants Have to Disclose Insurance, Does That Mean Litigation Financing Should be Disclosed, Too?

As the use of third-party litigation funding has become more widespread, one issue that has been debated is whether or not the existence and details of a funding arrangement must be disclosed to the adversarial parties. As I have noted in prior posts, courts have struggled with the question of whether or not funding arrangements must be disclosed under existing discovery rules. A number of proposals providing for mandatory disclosure of litigation funding arrangements have been proposed. Now, Wisconsin has become the first state to adopt a provision requiring the disclosure of litigation funding arrangements. The state’s action is just the latest step in what seems to be a general move toward requiring disclosure.
Continue Reading Wisconsin Become First State to Mandate Disclosure of Litigation Funding Arrangements

filefoldersMost observers of the current litigation scene are well aware of the recent rise in litigation funding, both in the U.S. and around the world. Indeed, according to a recent memo from the Skadden law firm (here), in 2016, “the worldwide market for third-party litigation financing was estimated to exceed $1 billion.” The industry is likely to continue to grow. The rise of litigation funding has not been without its concerns, however; with the increasing role of litigation funding have come calls for regulation of various kinds. One recurring issue has been with respect to the requirement of mandatory disclosure of litigation funding.
Continue Reading Mandatory Disclosure of Third-Party Litigation Funding: Up Next?