Relates to the disclosure of third-party consumer litigation financing agreements in which there is a right to receive compensation or proceeds from the consumer that is contingent on and sourced from any proceeds of the civil action, by settlement, judgment, or otherwise.
STATE OF NEW YORK
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7599
2025-2026 Regular Sessions
IN ASSEMBLY
April 1, 2025
___________
Introduced by M. of A. SEPTIMO -- read once and referred to the Commit-
tee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to
disclosing third-party consumer litigation financing agreements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "sunshine in lawsuit funding act".
3 § 2. The civil practice law and rules is amended by adding a new rule
4 3120-a to read as follows:
5 Rule 3120-a. Disclosure of financing agreements; discovery. 1. Except
6 as otherwise stipulated or ordered by the court, a consumer or their
7 legal representative shall, without awaiting a discovery request,
8 provide to all parties to the litigation, including their insurer if
9 prior to litigation, any litigation funding contract or agreement under
10 which anyone, other than a legal representative permitted to charge a
11 contingent fee representing a party, has a right to receive compensation
12 or proceeds from the consumer that are contingent on and sourced from
13 any proceeds of the civil action, by settlement, judgment, or otherwise.
14 2. The existence of litigation funding and all participants in such
15 arrangements are permissible subjects of discovery in all personal inju-
16 ry litigation and matters arising out of personal injuries including
17 actions for wrongful death and personal injury actions involving infants
18 or judicially declared incapacitated persons.
19 § 3. This act shall take effect on the thirtieth day after it shall
20 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11245-01-5
