WeVote
Log In

Bill

Bill

HB 105

Revise non-recourse litigation funding agreement regulations

136th Legislature (2025-2026) Introduced by Meredith Craig and 4 co-sponsors

Ohio revises regulations on third-party litigation funding agreements to establish or modify disclosure, fee, and consumer protection requirements for non-recourse funding contracts.

Signed By The Governor
#commerce #courtsandcivillaw #insurance
0
WeVote Research Nonpartisan
Bill Summary · HB 105

Legislative bill overview

HB 105 revises Ohio's regulatory framework governing non-recourse litigation funding agreements, which are contracts where third parties provide capital to plaintiffs in exchange for a percentage of settlement or judgment proceeds. The bill modifies disclosure requirements, fee limitations, and consumer protections for these agreements.

Why is this important

Non-recourse litigation funding has grown as an alternative financing mechanism for plaintiffs who cannot afford litigation costs, but the industry lacks uniform federal regulation. How Ohio regulates these agreements affects access to justice for lower-income litigants while also determining what protections exist against predatory lending practices in the legal funding sector.

Potential points of contention

  • Fee caps vs. market freedom: Disagreement over whether maximum interest rates/fees should be mandated to protect vulnerable plaintiffs or left to market competition
  • Disclosure transparency: Debate over what information funders must clearly disclose upfront regarding total costs, terms, and conditions
  • Impact on litigation strategy: Concern that funding agreements create conflicts of interest, potentially incentivizing quick settlements over plaintiffs' best outcomes

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

Sign in to ask a question.