Plaintiffs’ lawyers in New Jersey federal court must disclose information about third-party litigation finance agreements under a new rule, according to a report in Reuters.
Chief Judge Freda Wolfson, of the U.S. District Court for the District of New Jersey, signed the order Monday amending the court’s local rules to require parties in litigation to disclose information about non-parties that provide non-recourse funding for attorneys’ fees and expenses.
“The New Jersey District Court’s decision is a big deal; it will bring some much needed sunshine to the secretive litigation funding industry,” said Page Faulk, senior vice president for legal reform initiatives at the U.S. Chamber Institute for Legal Reform.
Parties must reveal the funder’s name and address, whether the funder’s approval is “necessary for litigation decisions or settlement decisions,” and a “brief description of the nature of the financial interest.” Under certain conditions, parties can also seek discovery of funding terms.
ILR and the New Jersey Civil Justice Institute (NJCJI) submitted joint comments supporting the proposed amendment last month. ILR and NJCJI’s comments can be found HERE.