The original instrument was prepared by Lebra Bias. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Nicholas
Davison.
DIGEST
SB 196 Engrossed 2023 Regular Session Peacock
Proposed law creates the Litigation Financing Disclosure and Security Protection Act.
Proposed law provides for definitions of "legal representative", "litigation financer", "litigation
financing", "litigation financing contract or agreement", "national security", "party", and "proprietary
information".
Proposed law provides that except as otherwise stipulated by the parties or ordered by the court, a
party or his legal representative shall provide to all litigants, including the insurer if prior to
litigation, any litigation financing contract or agreement under which anyone, other than a legal
representative permitted to charge a contingent fee, has received or has a right to receive
compensation or proceeds that are contingent on and sourced from any proceeds of the civil action
by settlement, judgement, or otherwise.
Proposed law provides that except as otherwise stipulated by the parties or ordered by the court, a
party or his legal representative shall provide to all litigants, including the insurer if prior to
litigation, any litigation financing contract or agreement under which anyone, other than a legal
representative permitted to charge a contingent fee, has received or has a right to receive proprietary
information or information affecting national defense or security obtained as a result of the litigation.
Proposed law provides that the existence of litigation financing, litigation financing contracts or
agreements, and all participants in such financing arrangements are permissible subjects of discovery
in all civil cases, including personal injury litigation or matters arising out of personal injuries.
Proposed law relative to class action suits, provides that in addition to the disclosure requirements
set forth in proposed law, the legal representative of the putative class shall disclose to all parties,
putative class members, and the court, any legal, financial, or other relationship between the legal
representative and litigation financer.
Proposed law provides that the litigation financer is solidarily liable for costs assessed by the court
relative to the payment of any monetary sanction that is imposed pursuant to present law, on the
party whose claim or action is being funded pursuant to a litigation financing contract or agreement.
Proposed law provides that any violation of proposed law shall make the litigation financing contract
unenforceable by the litigation financer, the consumer, or any successor-in-interest to the litigation
financing contract.
Effective August 1, 2023. (Adds R.S. 9:3580.1-3580.6)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the original bill
1. Clarifies the definition of "litigation financing".
2. Changes the term "litigation financing transaction" to "litigation financing contract
or agreement".
3. Clarifies the definition of "litigation financing contract or agreement".