U.S. Chamber Institute for Legal Reform (ILR) Senior Vice President of Legal Reform Initiatives Page Faulk told the ABA Journal Wisconsin’s new law that requires disclosure of all third party litigation funding arrangements is “another step in what’s become a growing movement.”
The law comes after a federal research report found that six of 13 federal courts of appeals and one-fourth of federal district courts now have some sort of rule requiring transparency. The federal judiciary’s Advisory Committee on Rules of Civil Procedure, for which the report was created, is also considering a federal rule on litigation funding. Now that Wisconsin became the first state to take action, Faulk says other states will soon take up similar legislation.
ILR President Lisa A. Rickard said the law, which requires any arrangements be disclosed even without a discovery request, “brings litigation funding out of the shadows.”