Bill

Bill > A07599


NY A07599

NY A07599
Relates to the disclosure of third-party consumer litigation financing agreements in which there is a right to receive compensation or proceeds from the consumer that is contingent on and sourced from any proceeds of the civil action, by settlement, judgment, or otherwise.


summary

Introduced
04/01/2025
In Committee
01/07/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the civil practice law and rules, in relation to disclosing third-party consumer litigation financing agreements

AI Summary

This bill, known as the "sunshine in lawsuit funding act," requires consumers or their legal representatives to proactively disclose any third-party litigation funding agreements to all parties in a lawsuit without waiting for a specific discovery request. These agreements are defined as contracts where a non-attorney third party has the right to receive compensation from the consumer that is contingent on the proceeds of a civil action, such as a settlement or judgment. The bill specifically applies to personal injury litigation, including wrongful death cases and actions involving infants or judicially declared incapacitated persons. Furthermore, the bill explicitly states that the existence of such litigation funding arrangements and the identities of participants in these arrangements are considered valid subjects for discovery in these types of legal cases. The legislation is designed to increase transparency in lawsuit funding by ensuring that all parties are aware of any financial arrangements that might influence a legal proceeding. The act will take effect 30 days after it becomes law.

Committee Categories

Justice

Sponsors (1)

Last Action

referred to judiciary (on 01/07/2026)

bill text


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