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Bill

SB 705

Relating to: nonrecourse civil litigation advances, prohibiting certain foreign persons from financing civil litigation, and providing a penalty.

2025-2026 Regular Session Introduced by Howard Marklein and 2 co-sponsors

Wisconsin bill prohibits foreign entities from financing civil lawsuits through nonrecourse advances, restricting plaintiff access to litigation funding while establishing enforcement penalties.

Read first time and referred to Committee on Judiciary and Public Safety
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Bill Summary · SB 705

Legislative bill overview

SB 705 restricts foreign persons from financing civil litigation in Wisconsin through nonrecourse litigation advances (loans to plaintiffs that are repaid only if they win). The bill prohibits certain foreign entities from providing these financial instruments and establishes penalties for violations. This represents a policy shift toward limiting external funding sources in the state's civil court system.

Why is this important

Litigation financing has grown significantly, allowing plaintiffs without resources to pursue cases they might otherwise abandon. However, foreign-funded litigation advances raise concerns about foreign entities influencing U.S. legal outcomes and potentially incentivizing frivolous suits. The bill reflects broader national debate about litigation funding transparency and control over the civil justice system.

Potential points of contention

  • Access to justice: Restricting litigation financing may prevent plaintiffs with legitimate claims but limited resources from pursuing cases, potentially benefiting well-funded defendants
  • Definition and enforcement: "Certain foreign persons" requires clear definition; overly broad language could capture allied nations' legitimate business activities or be difficult to enforce
  • Economic impact: Wisconsin litigation finance companies serving foreign capital sources could face business restrictions, and plaintiffs may lose competitive funding options

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

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