RDCSB196 4143 3331
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
SB 196 Reengrossed 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 the party not be domiciled in this state.
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 adds provisions excluding application to non-profit legal organizations seeking
only injunctive relief on behalf of its clients from disclosure requirements. Awards of costs
or attorney fees to non-profit legal organizations shall not be affected by proposed law.
Provides that a non-profit legal organization shall not be required to disclose its donors or
sources of funding.
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 any violation of proposed law shall make the litigation financing
contract absolutely null.
Effective August 1, 2023.
(Adds R.S. 9:3580.1-3580.5)
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".
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2. Changes the term "litigation financing transaction" to "litigation financing
contract or agreement".
3. Clarifies the definition of "litigation financing contract or agreement".
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Excludes nonprofit legal organizations from disclosure requirements.
2. Removes requirement that party be residing or domiciled in this state.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the reengrossed bill:
1. Amend definition of "litigation financing".
2. Change when a party shall disclose a litigation financing contract or agreement
from sixty days after entering the contract or agreement to sixty days after the
commencement of a civil action.
3. Remove provision on solidary liability.
4. Provide for the absolute nullity of contracts in violation of proposed law.
5. Make technical amendments to the grammar and semantics throughout the bill.
6. Make technical amendments to the title.
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