Bill > SB3025

This bill requires the Texas Supreme Court to establish rules mandating the disclosure of third-party litigation financing agreements in civil actions. Third-party litigation financing is defined as monetary or in-kind support for a lawsuit where repayment is contingent on the outcome of the case, such as receiving money from a judgment or settlement. The bill defines "financing" broadly to include payments to attorneys, witnesses, or covering litigation costs, regardless of what the support is called. The legislation specifically excludes standard loans to attorneys where repayment is not tied to case outcomes and traditional contingent fee arrangements between attorneys and clients. The Supreme Court is required to adopt these disclosure rules by December 31, 2019, and the rules will apply only to civil actions commenced on or after their effective date. The bill itself will take effect on September 1, 2025, providing ample time for the court to develop and implement the required disclosure procedures.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB3025