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SSB 1122

A bill for an act regulating litigation financing contracts, and including effective date and applicability provisions.

2025-2026 Regular Session

SSB 1122 mandates clear disclosures for litigation financing contracts, protecting consumers and ensuring transparency, especially with foreign entities involved.

Subcommittee: Schultz, Blake, and Rowley.
#classactions #consumeraffairs #contracts #disclosure #fees #foreignbusinesses #forms #litigation #secretaryofstate #tortlaw
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Bill Summary · SSB 1122

Summary of SSB 1122: Regulation of Litigation Financing Contracts

Bill Number: SSB 1122
Introduced On: February 13, 2025
Status: Currently in Subcommittee (Schultz, Blake, and Rowley)
Classification: Proposed Bill
Subject Areas: Class Actions, Consumer Affairs, Contracts, Disclosure, Fees, Foreign Businesses, Litigation, Secretary of State, Tort Law

Purpose and Intent

SSB 1122 aims to regulate litigation financing contracts, ensuring transparency and accountability in the financing of legal claims. The bill seeks to protect consumers involved in civil actions by establishing clear disclosure requirements for litigation financing agreements, particularly those involving foreign entities.

Key Provisions

  1. Disclosure Requirements:

    • Consumers or their legal representatives must disclose litigation financing contracts to:
      • All parties involved in the civil action or administrative proceeding.
      • The court or tribunal where the action is pending.
      • Any known individuals or entities with a contractual obligation to indemnify or defend a party in the action.
    • This disclosure must occur without waiting for a discovery request and is a continuous obligation, requiring updates within 30 days of entering into or amending a financing contract.

  2. Discovery of Financing Contracts:

    • The existence of litigation financing contracts and their participants can be subject to discovery in any related civil action or administrative proceeding, regardless of whether the action has commenced.

  3. Foreign Financing Notification:

    • If a plaintiff enters into a litigation financing contract financed by a foreign entity, they or their attorney must provide written notice of this arrangement.

Impact

  • Consumers: The bill primarily affects consumers seeking litigation financing, ensuring they are informed about the terms and parties involved in their financing agreements.
  • Legal Representatives: Attorneys will have additional responsibilities to ensure compliance with the disclosure requirements.
  • Courts and Agencies: The bill will impact how courts handle cases involving litigation financing, as they will need to consider these disclosures in their proceedings.
  • Foreign Entities: The requirement for notification regarding foreign financing may influence the involvement of international firms in litigation financing within the jurisdiction.

Procedural Aspects

  • The bill was introduced and referred to the Judiciary Committee on February 13, 2025, and is currently under consideration by a subcommittee. Further legislative actions will determine its progression through the legislative process.

Conclusion

SSB 1122 represents a significant step towards regulating litigation financing, aiming to enhance transparency and protect consumers in legal proceedings. By imposing strict disclosure requirements and addressing foreign financing, the bill seeks to create a more equitable legal environment for all parties involved.

Compiled from official sources — confirm details with the bill’s official record.

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