Texas House Bill HB2096

Texas 2019 - 86th Regular

Caption

Relating to mandatory disclosure of third-party litigation financing agreements.

Impact

If enacted, HB 2096 would alter current practices regarding court disclosures and documentation in civil actions. By requiring such agreements to be disclosed, the bill seeks to minimize surprises in trial proceedings and reduce the potential for conflicts of interest. This legislative change could also deter frivolous lawsuits financed purely for profit by external parties, as it would expose the level of dependency on third-party financing that may influence trial outcomes.

Summary

House Bill 2096, proposed to improve transparency in civil litigation, mandates the disclosure of third-party litigation financing agreements. This legislation defines third-party litigation financing as monetary or in-kind support provided to individuals or groups engaged in civil actions. Specifically, it requires that any financing obtained, which is conditioned on the outcomes of these actions, be disclosed to all parties involved in the respective civil cases. The bill aims to foster fairness and honesty in legal proceedings by shedding light on external financial influences on litigation.

Contention

The bill could evoke debate regarding the balance between needed transparency and the potential chilling effect on legitimate litigation strategies. Proponents, likely emphasizing consumer protection, argue that the measures will create an equitable legal system by preventing undisclosed financial arrangements from affecting the judicial process. Opponents may raise concerns about infringing on the rights of individuals to engage in litigation freely, especially if their ability to secure necessary financing is compromised by transparency demands.