summary
Introduced
02/27/2025
02/27/2025
In Committee
03/06/2025
03/06/2025
Crossed Over
Passed
Dead
06/16/2025
06/16/2025
Introduced Session
2025 Regular Session
Bill Summary
An act relating to litigation financing; providing a short title; designating ss. 69.011-69.081, F.S., as part I of ch. 69, F.S.; creating part II of ch. 69, F.S., relating to litigation financing; creating s. 69.101, F.S.; defining terms; creating s. 69.103, F.S.; requiring courts to consider potential conflicts of interest which may arise from the existence of a litigation financing agreement in specified circumstances; creating s. 69.105, F.S.; prohibiting specified acts by litigation financiers; creating s. 69.107, F.S.; requiring certain disclosures related to litigation financing agreements and the involvement of foreign persons, foreign principals, or sovereign wealth funds; providing for discovery related to litigation financing agreements; creating s. 69.109, F.S.; requiring a litigation financier to indemnify the plaintiffs against specified fees, costs, and sanctions in specified circumstances; creating s. 69.111, F.S.; providing that a litigation financing agreement is void and unenforceable in specified circumstances; providing for enforcement of specified violations under the Florida Deceptive and Unfair Trade Practices Act; authorizing a court, an agency, or a tribunal of competent jurisdiction to impose fines or other sanctions it deems appropriate for violations of s. 69.107, F.S.; providing severability; providing retroactive applicability; providing applicability; providing an effective date.
AI Summary
This bill introduces the "Litigation Investment Safeguards and Transparency Act," which establishes comprehensive regulations for litigation financing in Florida. The legislation defines litigation financing as a transaction where a financier provides funding to a party or counsel in a legal proceeding in exchange for a contingent payment based on the outcome. The bill sets forth strict rules governing such agreements, including prohibiting litigation financiers from directing legal strategy, receiving a larger share of proceeds than plaintiffs, paying referral fees, or assigning/securitizing financing agreements. The law mandates extensive disclosure requirements, compelling attorneys to reveal the existence of litigation financing agreements to all parties, the court, and other relevant entities within 30 days of entering such an agreement. Additionally, the bill requires specific disclosures about foreign persons, principals, or sovereign wealth funds involved in the financing. Litigation financiers must also indemnify plaintiffs against certain costs and sanctions, and agreements that violate the law's provisions are deemed void and unenforceable. Violations can be treated as deceptive trade practices, with potential fines and sanctions. The law will apply to litigation financing agreements entered into on or after July 1, 2025, with specific transitional provisions for pending legal proceedings.
Sponsors (1)
Last Action
Died in Judiciary (on 06/16/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.flsenate.gov/Session/Bill/2025/1534 |
| BillText | https://www.flsenate.gov/Session/Bill/2025/1534/BillText/Filed/HTML |
Loading...