In a Law360 op-ed, a partner at Bowman and Brooke LLP said there is “a clear, present and pressing need for action” on third party litigation funding (TPLF) disclosure.
Mary Novacheck called the practice an “increasingly common and sometimes troubling aspect of the legal system,” given its growing acceptance. Now that TPLF is more common, she says it might run afoul of civil procedure rules that require the court to take the “parties’ resources” into consideration when deciding whether to permit certain types of discovery. If a TPLF agreement is not disclosed, Novacheck says “the court cannot fully or accurately consider the parties’ financial resources.”
In addition to playing an important role in discovery, TPLF disclosure would “provide consistency to all cases” and “help address conflicts and the potential roles of nonparties in litigation.”