Bill > SB881

This bill establishes comprehensive regulations for litigation funding in Missouri, focusing on preventing foreign entities from financially supporting legal actions. The legislation defines key terms such as "litigation funder" (an entity providing financial support for a lawsuit) and "litigation funding agreement" (a written contract where a third party provides funds to a party or law firm in exchange for a share of potential legal proceeds). The bill prohibits foreign principals or their agents from engaging in litigation funding or investing in litigation funders within the state. It mandates that litigation funders have a fiduciary duty to the parties they support and can be held jointly liable for costs or sanctions arising from the funded legal action. The bill also creates significant legal consequences for violations, including potential classification as a class E felony for willful and knowing violations, and grants the attorney general the power to prohibit entities from providing litigation funding if they breach the law. Additionally, any litigation funding agreement entered into in violation of these provisions would be deemed void and unenforceable, providing a strong deterrent against improper litigation funding practices.

Justice

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=539