Mississippi House Bill HB1193

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Litigation funding by third parties; require all parties liable for costs.

Impact

The implications of HB1193 are quite significant, as it amends the existing Mississippi Rules of Civil Procedure. The primary effect of the bill is to ensure that any individual who stands to gain financially from the outcomes of a civil action shares responsibility for associated costs. This aims to prevent situations where third-party funders could finance litigation without bearing potential costs of unsuccessful claims, which can ultimately contribute to a burden on the court system as well as on the involved parties who may be forced to bear the entirety of litigation expenses.

Summary

House Bill 1193, introduced by Representative Lamar, addresses the financial responsibilities associated with legal proceedings by mandating that individuals, aside from attorneys with permission to charge contingent fees, are jointly liable for costs linked to civil actions in which they have a right to receive compensation that depends on settlement or judgment proceeds. This legal framework aims to clarify the financial obligations of various parties involved in civil litigation, ensuring that every relevant party can be held accountable for costs, thus helping mitigate exploitation of the legal system by parties seeking profit from litigation without bearing financial responsibility themselves.

Contention

Notably, discussions surrounding the bill may include concerns regarding fairness and access to justice. Proponents argue that the bill levels the playing field, making it more difficult for third-party funders to engage in exploitative practices. Conversely, opponents could articulate concerns that imposing such liabilities may deter individuals from seeking necessary representation or pursuing legitimate claims against larger entities, potentially impacting the integrity of civil litigation processes. There is a broader question about balancing the rights of litigants and ensuring fair access to the legal system amidst the evolving policies around litigation funding.