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HB 432

CIVIL/PROCEDURE: Provides relative to disclosure of financing agreements

2025 Regular Session Introduced by Beryl Amedée and 23 co-sponsors

HB 432 requires litigants to disclose financing agreements in Louisiana civil cases, affecting litigation transparency and settlement dynamics while raising compliance burden concerns.

Read second time by title and referred to the Committee on Judiciary A.
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Bill Summary · HB 432

Legislative bill overview

HB 432 modifies Louisiana's civil procedure rules to establish requirements for disclosing financing agreements in litigation. The bill has passed the House with strong bipartisan support (83-6) and is currently under Senate committee review in the Judiciary A Committee.

Why is this important

Disclosure requirements for financing agreements affect litigation transparency and can impact settlement negotiations, attorney fees arrangements, and third-party litigation funding practices. Clear disclosure rules help courts and opposing parties understand financial incentives and potential conflicts of interest in legal disputes.

Potential points of contention

  • Scope of "financing agreements": Unclear whether the bill covers only litigation funding arrangements, contingency fee agreements, or broader financial relationships that might influence a case
  • Burden on parties: Mandatory disclosure requirements may create administrative costs and complexity for litigants, particularly in smaller cases where disclosure obligations could outweigh the dispute value
  • Third-party litigation funding: The bill may impact the growing litigation finance industry, which funds plaintiffs' cases in exchange for case returns, raising questions about whether expanded disclosure deters legitimate funding or exposes confidential business arrangements

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

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