Litigation Transparency Act of 2024

Bill: 118-hr-9922
Sponsor: full_name: Rep. Issa, Darrell [R-CA-48]
Introduced: 2024-10-04
Policy area: Law
Latest action: action_date: 2024-10-04
text: Referred to the House Committee on the Judiciary.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 9922 IN THE HOUSE OF REPRESENTATIVES October 4, 2024 Mr. Issa (for himself and Mr. Fitzgerald ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 28, United States Code, to provide for transparency and oversight of third-party beneficiaries in civil actions.

1. Short title This Act may be cited as the Litigation Transparency Act of 2024 . 2. Transparency and oversight of third-party beneficiaries in civil cases (a) In general Chapter 111 of title 28, United States Code, is amended by adding at the end the following: 1660. Third-party beneficiary disclosure (a) In general Except as provided in subsection (b), in any civil action, a party or any counsel of record for a party shall— (1) disclose in writing to the court and all other named parties to the civil action the identity of any person (other than counsel of record) that has a right to receive any payment or thing of value that is contingent on the outcome of the civil action or a group of actions of which the civil action is a part; and (2) produce to the court and to each other named party to the civil action, for inspection and copying, any agreement creating a contingent right referred to in paragraph (1), including any ancillary agreement or document, except as otherwise stipulated or ordered by the court. (b) Exception The requirements under subsection (a) shall not apply with respect to a person that has a right to receive payment described in subsection (a)(1) if the right to receive payment is solely— (1) the repayment of the principal of a loan; (2) the repayment of the principal of a loan plus interest that does not exceed the higher of 7 percent or a rate two times the annual average 30-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the year preceding the date on which the relevant agreement was executed; or (3) the reimbursement of attorney’s fees. (c) Timing The disclosures required by subsection (a) shall be made not later than the later of— (1) 10 days after the execution of any agreement described in subsection (a)(2); or (2) the time of the filing of the action before the court. (d) Duty To correct A party or counsel of record that made a disclosure required by this section shall supplement or correct each such disclosure in a timely manner— (1) if such party or counsel of record learns that the disclosure is or has become incomplete or incorrect in some material respect, if the additional or corrective information has not otherwise been made known to the other parties during the discovery process or in writing; or (2) as ordered by the court. . (b) Clerical amendment The table of sections for chapter 111 of title 28, United States Code, is amended by adding at the end the following: 1660. Third-party beneficiary disclosure. . 3. Applicability The amendments made by this Act shall apply to any civil action pending on or commenced after the date of enactment of this Act.