Jeffrey Grosholz, ‘In the Shadows: Third-Party Litigation Funding Agreements and the Effect Their Nondisclosure Has on Civil Trials’

ABSTRACT
Third-party litigation funding (‘TPLF’) has become an increasingly common practice in the United States in recent years, especially in the field of civil litigation. In civil practice, TPLF entails a third party funding the litigation costs of an actual party to a case and in turn the third party receives a share of any damages if the suit is successful. Often, the court and jury are not aware of any TPLF agreement, as there are currently few rules requiring disclosure of the existence of such agreements or the identity of TPLF financiers. And while generally entities engaged in TPLF have no connection to the par-ties, in at least one high-profile case the third party financing the litigation had a personal animus against the defendants. Further, there is evidence suggesting the plaintiff’s litigation strategy in that case was driven by this animus between the third party and the defendants and had an effect on the overall outcome of the lawsuit …

Grosholz, Jeffrey, In the Shadows: Third-Party Litigation Funding Agreements and the Effect Their Nondisclosure Has on Civil Trials (April 19, 2019). Florida State University Law Review, volume 47, no 2, 2020.

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