The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Hanna Gettys.
DIGEST
SB 355 Original 2024 Regular Session Stine
Proposed law provides definitions for the following terms: "foreign person", "foreign state", "agency
or instrumentality of a foreign state", "foreign sovereign wealth fund", "litigation expenses",
"proprietary information", "national security interests", "foreign third-party litigation funder", and
"third-party litigation funder".
Proposed law provides that in any civil action in which a third-party litigation funder provides funds
intended to defray litigation expenses or the financial impact of a negative judgment and the source
or sources of its funding includes a foreign person, foreign state, or foreign sovereign wealth fund,
the third-party litigation funder shall meet all of the following requirements:
(1)Disclose in writing to the attorney general the name, the address, and citizenship or the
country of incorporation or registration of any foreign person, foreign state, or foreign
sovereign wealth fund that has a right to receive or obligation to make any payment that is
contingent on the outcome of the civil action, or portfolio that includes the civil action and
involves the same counsel of record or affiliated counsel, by settlement, judgment, or
otherwise.
(2)Disclose in writing to the attorney general the name, address, the citizenship or the country
of incorporation or registration of any foreign person, foreign state, or sovereign wealth fund
that has received or is entitled to receive proprietary information or information affecting
national security interests obtained as a result of the funding agreement for such civil action.
This disclosure does not pertain to information received by a party to the action, counsel of
record, or law firm of record.
(3)Produce to the attorney general a copy of any agreement creating a contingent right described
in proposed law.
Proposed law provides that the disclosure and certification required by proposed law shall be made
no later than 30 days after execution of any agreement or the date on which the civil action is filed.
Proposed law provides that a party who enters into an agreement described in proposed law after the
date on which the civil action is filed shall make the disclosure required by proposed law no later
than 30 days after being served.
Proposed law provides that a disclosure required pursuant to proposed law shall be made of a
declaration under penalty of perjury based on actual knowledge of the declarant formed after
reasonable inquiry, provided to the attorney general by the third-party litigation funder making the
disclosure, and maintained by the attorney general to preserve the confidentiality of the parties to the litigation, attorneys, and law firms.
Proposed law provides that no later than 30 days after the date on which a third-party litigation
funder knew that the disclosure required pursuant to proposed law is incomplete or inaccurate in any
material respect, the third-party litigation funder shall supplement or correct the disclosure.
Proposed law provides that it shall be unlawful for any third-party litigation funder to engage in any
of the following:
(1)Knowingly enter into an agreement creating a right for anyone, other than the named parties,
counsel of record, or law firm of record, to receive or make any payment that is contingent
on the outcome of a civil action or any matter within a portfolio that includes the civil action
and involves the same counsel of record or affiliated counsel, the terms of which are to be
satisfied by funds directly sourced, in whole or in part, from a foreign state or foreign
sovereign wealth fund.
(2)Direct or make any decisions with respect to the course of any civil action for which the
litigation funder has provided funding intended to defray litigation expenses or the financial
impact of a negative judgment related to the civil action. This prohibition includes, but is not
limited to, decisions in appointing or changing counsel, choice or use of expert witnesses,
litigation strategy, and settlement or other disposition.
(3)Be assigned rights to or in a civil action for which the litigation funder has provided funding
intended to defray litigation expenses related to the civil action or the financial impact of a
negative judgment, other than the right to receive a share of the proceeds pursuant to the
litigation financing agreement.
Proposed law provides that any agreement in violation of this proposed law shall be null and void.
Proposed law provides that a violation of this proposed law by a foreign third-party litigation funder
or a third-party litigation funder is a deceptive and unfair trade practice actionable pursuant to the
applicable laws of the state of La.
Proposed law provides that the attorney general may institute a legal action in a court of competent
jurisdiction to enforce compliance, impose fines, or prohibit a third party litigation funder from
operating within this state, or any other appropriate sanctions for violation of any provision of
proposed law.
Proposed law provides that the attorney general shall, at least once each calendar year, report to the
president of the Senate and the speaker of the House of Representatives describing foreign
involvement in litigation financing agreements in the preceding calendar year.
Proposed law provides that the report shall include:
(1)The name, citizenship or the country of incorporation or registration of any foreign person, foreign state, or sovereign wealth fund and whether they were providing funds indented to
defray litigation expenses or the financial impact of a negative judgment.
(2)Whether any third-party litigation funder violated the prohibitions of proposed law, and if
the attorney general took any enforcement action under proposed law.
(3)Any determinations or analysis of the disclosures received.
Proposed law provides that the report shall not identify the parties to the civil action, the counsel of
record, or the law firm of record.
Proposed law provides that the attorney general shall distribute the reports pursuant to proposed law
in compliance with the provisions of proposed law.
Proposed law provides that the provisions of proposed law shall have prospective application.
Effective August 1, 2024.
(Adds R.S. 9:3580.1-3580.7)