Wisconsin Become First State to Mandate Disclosure of Litigation Funding Arrangements

As the use of third-party litigation funding has become more widespread, one issue that has been debated is whether or not the existence and details of a funding arrangement must be disclosed to the adversarial parties. As I have noted in prior posts, courts have struggled with the question of whether or not funding arrangements must be disclosed under existing discovery rules. A number of proposals providing for mandatory disclosure of litigation funding arrangements have been proposed. Now, Wisconsin has become the first state to adopt a provision requiring the disclosure of litigation funding arrangements. The state’s action is just the latest step in what seems to be a general move toward requiring disclosure.   Litigation funding is a mechanism to provide litigants with the financial means to pursue litigation, or even the financial means to defend litigation. In exchange for the financing, the borrower agrees to give the funders a portion of any settlement,…

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