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Bill

H 1861

An Act providing transparency in third party litigation financing

194th Legislature (2025-2026) Introduced by Adrian Madaro

Requires disclosure of third-party litigation financing agreements to courts and opposing parties to increase transparency in Massachusetts civil cases.

Accompanied a study order, see H5281 (under House Rule 27)
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Bill Summary · H 1861

Legislative bill overview

H 1861 aims to increase disclosure requirements and transparency surrounding third-party litigation financing agreements in Massachusetts. Third-party litigation financing involves non-parties providing capital to plaintiffs in exchange for a percentage of any settlement or judgment. The bill would require parties, attorneys, or financiers to disclose these arrangements to courts and opposing parties.

Why is this important

Third-party litigation financing is a growing industry that can enable plaintiffs to pursue cases they otherwise couldn't afford, but it also raises concerns about conflicts of interest, inflated claims, and undisclosed financial incentives affecting case outcomes. Transparency requirements could help judges and opposing counsel understand potential financial pressures influencing litigation decisions while maintaining access to justice for those with legitimate claims.

Potential points of contention

  • Access to justice vs. cost concerns: Transparency mandates could discourage litigation funders from financing cases, potentially limiting options for plaintiffs with meritorious but expensive claims who lack resources
  • Competitive disadvantage: Plaintiffs' attorneys may argue that disclosure requirements expose their litigation strategy and financial arrangements to opposing counsel in ways that create tactical disadvantages
  • Scope and enforceability: Disputes likely over what constitutes "third-party financing" (does it include contingency arrangements, loans, insurance?), who must disclose, and what penalties apply for non-compliance

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

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