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Bill Summary · HB 280

Legislative bill overview

HB 280 amends Utah law to regulate third-party litigation funding—arrangements where outside investors finance lawsuits in exchange for a percentage of settlements or judgments. The bill establishes disclosure requirements, fee restrictions, and oversight mechanisms for these funding agreements to protect parties involved in litigation.

Why is this important

Third-party litigation funding has grown significantly, enabling plaintiffs to pursue cases they couldn't otherwise afford but potentially creating incentives for frivolous suits or inflated claims. These amendments directly affect access to justice, litigation costs, and the financial incentives driving legal disputes in Utah courts.

Potential points of contention

  • Access to justice vs. litigation inflation: Restricting litigation funding may prevent financially disadvantaged plaintiffs from pursuing valid claims, while supporters argue regulation prevents financing of marginal or speculative suits
  • Disclosure and transparency scope: Debate over what information funders must disclose, to whom, and at what stage of litigation—affecting business confidentiality versus courtroom fairness
  • Fee caps and their impact: Limiting funder profits may reduce capital available for litigation finance, potentially restricting access to cases that investors deem higher-risk but legitimate

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

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