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SB 1215

litigation; financing; consumer protection; enforcement

57th Legislature - First Regular Session Introduced by Vince Leach

Arizona requires litigation finance companies to disclose terms and fees to plaintiffs, establishing consumer protections and state enforcement mechanisms for the alternative funding industry.

Signed by Governor
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Bill Summary · SB 1215

Legislative bill overview

SB 1215 establishes regulatory frameworks for litigation financing in Arizona, imposing disclosure requirements and consumer protections for third-party litigation funding agreements. The bill creates enforcement mechanisms and defines permissible practices for companies that provide funding to plaintiffs in exchange for a percentage of settlement or judgment proceeds.

Why is this important

Litigation financing has grown substantially as an alternative funding source for plaintiffs who cannot afford legal costs, but the industry operates with minimal oversight. This bill addresses consumer protection gaps by requiring transparency about financing terms, fees, and potential conflicts of interest—affecting access to justice for individuals pursuing lawsuits while protecting them from predatory terms.

Potential points of contention

  • Litigation cost concerns: Supporters argue regulation protects vulnerable litigants; critics worry restrictions could reduce funding availability and limit access to justice for those without resources
  • Fee disclosure vs. competitiveness: Requirements for full disclosure of funding terms and fees may reduce lender participation or increase costs, potentially making litigation financing less accessible
  • Enforcement burden: Creates new state enforcement obligations and potential litigation over compliance, adding administrative costs to state government

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

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