Litigation Funding Transparency Act of 2021

Bill: 117-s-840
Sponsor: full_name: Sen. Grassley, Chuck [R-IA]
Introduced: 2021-03-18
Policy area: Law
Subjects: Civil actions and liability

Judicial procedure and administration

Lawyers and legal services

Legal fees and court costs
Latest action: action_date: 2021-03-18
text: Read twice and referred to the Committee on the Judiciary.

Summaries:
action_date: 2021-03-18
action_desc: Introduced in Senate
text: <p><b>Litigation Funding Transparency Act of 2021</b></p> <p>This bill requires lawyers for plaintiffs in certain lawsuits to provide the court and other parties in the lawsuit with any agreement that entitles an outside business (i.e., a business that is not a party, class member, or counsel in the lawsuit) to receive payment contingent on the lawsuit's outcome. The lawyers for the plaintiffs shall also provide the identity of the outside business.</p> <p>Specifically, these requirements shall apply to any class action or multi-district litigation (i.e. related civil cases pending in different districts that are consolidated for pretrial proceedings).<br /> </p> <p style="margin: 0in; font-family: &quot;Times New Roman&quot;; font-size: 12pt;"> </p>

tv_txt: II 117th CONGRESS 1st Session S. 840 IN THE SENATE OF THE UNITED STATES March 18, 2021 Mr. Grassley (for himself, Mr. Cornyn , Mr. Tillis , and Mr. Sasse ) introduced the following bill; which was read twice and referred to the Committee on the Judiciary A BILL To amend title 28, United States Code, to increase transparency and oversight of third-party litigation funding in certain actions, and for other purposes.

1. Short title This Act may be cited as the Litigation Funding Transparency Act of 2021 . 2. Transparency and oversight of third-party litigation funding in class actions (a) In general Chapter 114 of title 28, United States Code, is amended by adding at the end the following: 1716. Third-party litigation funding disclosure (a) In general In any class action, class counsel shall— (1) disclose in writing to the court and all other named parties to the class action the identity of any commercial enterprise, other than a class member or class counsel of record, that has a right to receive payment that is contingent on the receipt of monetary relief in the class action by settlement, judgment, or otherwise; and (2) produce for inspection and copying, except as otherwise stipulated or ordered by the court, any agreement creating the contingent right. (b) Timing The disclosure required by subsection (a) shall be made not later than the later of— (1) 10 days after execution of any agreement described in subsection (a)(2); or (2) the time of service of the action. . (b) Technical and conforming amendment The table of sections for chapter 114 of title 28, United States Code, is amended by adding at the end the following: 1716. Third-party litigation funding disclosure. . 3. Transparency and oversight of third-party litigation funding in multidistrict litigation Section 1407 of title 28, United States Code, is amended— (1) by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; and (2) by inserting after subsection (f) the following: (g) (1) In any coordinated or consolidated pretrial proceedings conducted pursuant to this section, counsel for a party asserting a claim whose civil action is assigned to or directly filed in the proceedings shall— (A) disclose in writing to the court and all other parties the identity of any commercial enterprise, other than the named parties or counsel, that has a right to receive payment that is contingent on the receipt of monetary relief in the civil action by settlement, judgment, or otherwise; and (B) produce for inspection and copying, except as otherwise stipulated or ordered by the court, any agreement creating the contingent right. (2) The disclosure required by paragraph (1) shall be made not later than the later of— (A) 10 days after execution of any agreement described in paragraph (1)(B); or (B) the time the civil action becomes subject to this section. . 4. Applicability The amendments made by this Act shall apply to any case pending on or commenced after the date of the enactment of this Act.