October 11, 2018 Top Story

Calls for Transparency Loom over Increase in Litigation Funding

Rise in use of third-party litigation funding provokes disclosure requirement trend

Onika K. Williams

Wisconsin became the first state to pass legislation that requires the disclosure of third-party litigation funding—regardless of whether parties request the information in discovery.

iStockphoto by Getty Images

Under Wisconsin Act 235, a party must disclose “any agreement under which any person … has a right to receive compensation that is contingent on and sourced from any proceeds of the civil action, by settlement, judgment or otherwise.” While the law does not apply to lawyer contingency fee arrangements, Wisconsin’s new legislation serves as a groundbreaking move towards disclosure of outside litigation funding arrangements.

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