Indiana Is First In U.S. With Litigation Funding Disclosure Law

Indiana recently passed a pioneering law requiring transparency on litigation advance payments, also known as third-party funding, before civil lawsuits go to trial.

Governor Eric Holcomb signed the bill into law on April 20, following its passage through the state legislature on March 28, with a 71-24 bi-partisan vote.

The legislation mandates that all parties involved in the civil case and relevant insurers be informed of any litigation funding agreements, and also specifies that the written notification cannot be presented as evidence.

The National Association of Mutual Insurance Companies lauded the move as a significant step towards reducing legal system abuse by enforcing openness and honesty in funding agreements.

The law is a positive development in tackling the multi-billion dollar industry of litigation funding, which has historically driven up the cost and duration of civil cases.