Bill > SB10

This bill establishes comprehensive regulations for litigation funding agreements in Ohio, focusing on both consumer and commercial litigation financing. The legislation defines key terms and sets strict requirements for consumer litigation funding agreements, including mandating clear, understandable written agreements with specific disclosures, a right to cancel within ten business days, and limitations on fees and charges. The bill prohibits litigation funding companies from paying referral fees, influencing legal strategies, or making settlement decisions, and requires transparency about the existence of funding agreements. It places restrictions on who can enter into such agreements, particularly targeting foreign entities, and gives the attorney general power to take action against companies that violate the regulations. The bill aims to protect consumers by ensuring they understand the terms of litigation funding, prevent potential abuses in the litigation financing industry, and maintain the integrity of legal proceedings by limiting external influences on legal claims. Notably, the legislation preserves the public policy against champerty and maintenance, as established in a previous Ohio Supreme Court ruling, by creating a narrow, regulated framework for litigation funding agreements.