The twelve leading litigation finance firms have set up the International Legal Finance Association (ILFA) according to a report on Law.com.
“The Chamber, of course, has set its face against litigation funding, and they have, in theory, had their own way. In the various jurisdictions in which they have challenged legal finance, they’ve dealt with just the local player,” ILFA’s inaugural chairman will be Leslie Perrin, leader of London-based Calunius Capital said. “We felt that was giving them an undue advantage.”
The U.S. Chamber Institute for Legal Reform (ILR) believes third party litigation funding (TPLF), like other outside interests in litigation, should be subject to reasonable transparency standards and has worked hard to ensure that states and national governments enact clear standards. On multiple occasions, ILR has urged the federal Committee on Rules of Practice and Procedure and Advisory Rules Committees to adopt a disclosure rule to bring a degree of transparency to TPLF. Recently, ILR led a coalition of 30 business and legal organizations in sending a letter the Committee debunking the funders’ arguments against disclosure and transparency.
Some U.S. states have already taken action on TPLF and lawsuit lending. Maryland and Colorado consider litigation finance to be a loan subject to state usury laws, and Tennessee capped rates at 10%. Maine, Ohio, Oklahoma, and Vermont have passed laws requiring greater disclosure.