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Bill

SB 511

Generally revising laws related to litigation financing

2025 Regular Session Introduced by Greg Hertz

Montana law revised to regulate third-party litigation financing agreements, affecting how lawsuits can be funded and what disclosures plaintiffs and financiers must provide.

Chapter Number Assigned
#corporations/partnerships/associations
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Bill Summary · SB 511

Legislative bill overview

SB 511 revises Montana's laws governing litigation financing, which involves third-party funding of lawsuits in exchange for a percentage of settlement or judgment proceeds. The bill modifies regulations around how these financing agreements operate, what disclosures are required, and the rights and obligations of parties involved in such arrangements.

Why is this important

Litigation financing has grown significantly as an alternative funding source for individuals and small businesses unable to afford legal costs upfront. This bill's revisions affect access to justice for plaintiffs, the cost structure of legal disputes, and potential risks of conflicts of interest or predatory lending practices in the legal system.

Potential points of contention

  • Consumer protection vs. market access: Stricter regulations may reduce financing availability for legitimate claimants with valid cases but limited resources, or conversely, looser rules may expose plaintiffs to exploitative terms.
  • Disclosure and transparency requirements: Determining the appropriate level of detail required in financing agreements and whether parties adequately understand the long-term costs and implications.
  • Impact on settlement incentives: Changes in how financing agreements operate could alter parties' motivations to settle quickly versus litigate, potentially affecting court efficiency and case outcomes.

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

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