Montana Enacts New Legislation Regulating Third-Party Litigation Funding in the State

By John Freund |

Calls for increased regulation of litigation financing have traditionally been aimed at national governments, with lobbying efforts focused on enacting nationwide changes to impose stricter oversight on the practice. However, the last few months have demonstrated that these efforts may be finding more success in individual states, as just last week, Montana became the latest state to enact new legislation regulating third-party litigation funding.

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An LFJ Conversation with Michael Kelley, Partner, Parker Poe

By John Freund |

Calls for increased regulation of litigation financing have traditionally been aimed at national governments, with lobbying efforts focused on enacting nationwide changes to impose stricter oversight on the practice. However, the last few months have demonstrated that these efforts may be finding more success in individual states, as just last week, Montana became the latest state to enact new legislation regulating third-party litigation funding.

Senate Bill 269, the ‘Litigation Financing Transparency and Consumer Protection Act’, was signed into law by Governor Grey Gianforte last week, and enforces several new requirements for the use of litigation funding for civil actions in Montana. 

The most notable measure included in SB 269 is the mandatory disclosure of all litigation financing contracts. The bill states that ‘a consumer or the consumer’s legal representative shall, without awaiting a discovery request, disclose and deliver’ the litigation financing contract to all parties involved in the litigation. This includes all parties and their legal representatives, courts or tribunals, and insurers “with a pre-existing contractual obligation to indemnify or defend a party to the civil action.”

The legislation also prohibits anyone from acting as a litigation financier in Montana, unless they are formally registered with the secretary of state. Section 7 of the bill does provide a number of exemptions from the requirements; however, this primarily applies to non-profit or business entities that provide financing for a legal action without receiving ‘the payment of interest, fees, or other consideration’.

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Legal Finance SE Announces Plans to Fund Hundreds of Lawsuits Against Illegal Online Casinos

By Harry Moran |

Calls for increased regulation of litigation financing have traditionally been aimed at national governments, with lobbying efforts focused on enacting nationwide changes to impose stricter oversight on the practice. However, the last few months have demonstrated that these efforts may be finding more success in individual states, as just last week, Montana became the latest state to enact new legislation regulating third-party litigation funding.

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Federal Judges Argue Against Public Disclosure of Litigation Funding

By Harry Moran |

Calls for increased regulation of litigation financing have traditionally been aimed at national governments, with lobbying efforts focused on enacting nationwide changes to impose stricter oversight on the practice. However, the last few months have demonstrated that these efforts may be finding more success in individual states, as just last week, Montana became the latest state to enact new legislation regulating third-party litigation funding.

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