Politician Alleges “Lawsuit Abuse” Against Consumer Legal Funders

Is there “lawsuit abuse” happening in Iowa and elsewhere? If so, is Consumer Legal Funding to blame? One former trucker and current Iowa state senator alleges exactly that—and Governor Kim Reynolds is on board. Several bills are in the works to limit award sizes and prevent litigation funders from increasing access to justice for those who have been hurt in traffic accidents.

Transport Topics News details that Republican state senator Adrian Dickey (owner of a transport company and board member of Iowa Motor Truck Association) wants to outlaw the use of litigation funding to sue trucking companies. But isn’t there a conflict of interest when the owner of a trucking company introduces a bill which protects his own company from well-funded lawsuits? 

According to “experts,” consumer legal funding is on the rise and puts defense attorneys at a disadvantage. While it’s true that the funding industry is growing, it’s equally true that funders seek out cases with merit. Funding a weak case is financially irresponsible and would deplete cash reserves that could be used to support stronger, more meritorious claims.

At present, Dickey’s bill SF 2085 has not moved forward. Some felt the bill required a clarifying amendment defining the ‘litigation funding’ it hopes to ban. If passed, the bill would make Iowa the only US state to outlaw third-party legal funding, leaving many average citizens without recourse should they require legal representation.

Governor Reynolds spoke out in favor of the bill that advocates for a $1 million limit on awards in cases involving trucking accidents and medical malpractice. But who does this bill protect? Not legal professionals, and certainly not those who have been injured by medical malpractice. The question then becomes, who is advocating for them?

Is there “lawsuit abuse” happening in Iowa and elsewhere? If so, is Consumer Legal Funding to blame? One former trucker and current Iowa state senator alleges exactly that—and Governor Kim Reynolds is on board. Several bills are in the works to limit award sizes and prevent litigation funders from increasing access to justice for those who have been hurt in traffic accidents.

Transport Topics News details that Republican state senator Adrian Dickey (owner of a transport company and board member of Iowa Motor Truck Association) wants to outlaw the use of litigation funding to sue trucking companies. But isn’t there a conflict of interest when the owner of a trucking company introduces a bill which protects his own company from well-funded lawsuits? 

According to “experts,” consumer legal funding is on the rise and puts defense attorneys at a disadvantage. While it’s true that the funding industry is growing, it’s equally true that funders seek out cases with merit. Funding a weak case is financially irresponsible and would deplete cash reserves that could be used to support stronger, more meritorious claims.

At present, Dickey’s bill SF 2085 has not moved forward. Some felt the bill required a clarifying amendment defining the ‘litigation funding’ it hopes to ban. If passed, the bill would make Iowa the only US state to outlaw third-party legal funding, leaving many average citizens without recourse should they require legal representation.

Governor Reynolds spoke out in favor of the bill that advocates for a $1 million limit on awards in cases involving trucking accidents and medical malpractice. But who does this bill protect? Not legal professionals, and certainly not those who have been injured by medical malpractice. The question then becomes, who is advocating for them?