Legislation signed by Wisconsin Gov. Scott Walker last week requires all third-party litigation funding deals to be disclosed—even if a discovery request has not been made for that information.
Wisconsin Act 235 requires litigants “provide to the other parties any agreement” under which third-party funders are entitled to a share in any earnings from a civil action, settlement or judgment. The rule excludes lawyer contingent fee arrangements. According to Law360, the new law is first of its kind on the state level.
The U.S. Chamber of Commerce’s Institute for Legal Reform supports the new law, saying that litigation funding both prolongs litigation and leads to more lawsuits.