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Bill

SB 1534

Litigation Financing

2025 Regular Session Introduced by Jay Collins

Florida bill proposing disclosure requirements and fee limits for third-party lawsuit financing agreements to protect plaintiffs from excessive charges while maintaining market access.

Died in Judiciary
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Bill Summary · SB 1534

Legislative bill overview

SB 1534 proposes to regulate litigation financing (also called lawsuit funding or legal financing) in Florida by establishing disclosure requirements, fee limitations, and consumer protections for agreements where third parties provide funds to plaintiffs in exchange for a portion of settlement proceeds. The bill died in the Judiciary Committee without advancing to a floor vote.

Why is this important

Litigation financing is a growing industry that allows individuals to access funds while awaiting case resolution, but can involve high fees (often 20-50% or more) that significantly reduce plaintiff recoveries. Regulation of this sector affects access to justice for plaintiffs who lack resources, the cost of litigation, and potential ethical concerns about outside parties influencing case strategies.

Potential points of contention

  • Fee structure concerns: Debate over whether proposed fee caps adequately balance plaintiff access to capital against funder profitability and market sustainability
  • Disclosure and transparency: Questions about what information consumers truly understand and whether current disclosure requirements are sufficient to prevent exploitation
  • Market access vs. regulation: Tension between protecting consumers from predatory terms and maintaining a viable litigation finance market that serves plaintiffs without other funding options

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

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