The third-party litigation funding (TPLF) industry continues to expand rapidly. Litigators in both state and federal courts now routinely encounter opposing parties who have received litigation financing from nonparty companies in exchange for a share of the anticipated litigation recovery, which traditionally serves as the primary collateral. Understanding the real parties involved in litigation, their incentives, and the rights given or requirements placed on them by TPLF agreements is key for litigators advising clients on case and settlement strategy. But the current landscape represents a rough patchwork of rules, and a lack thereof, where these agreements and the critical information they contain may be difficult or impossible to obtain—particularly if they are not sought through targeted discovery demands. This article discussed four tips for litigators seeking discovery on TPLF.
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Read "Four Tips for Seeking Discovery on Third-Party Litigation Funding," co-authored by Steven M. Harkins and Victoria J. Langton for the American Bar Association. (subscription)