Protecting TPLF From Abuse Act

New disclosure rules for lawsuit funders

This bill would require parties or their lawyers in civil lawsuits (pending or started after enactment) to disclose any non-lawyer who has a legal right to get money or value tied to the case. The producing party would give the court the agreement creating that right for in camera review, and after review would let other named parties inspect and copy those documents, subject to protective orders and privileges. Disclosures would be due by the later of: 10 days after signing the agreement, the time for Rule 26(a)(1) initial disclosures, or the court's deadline, and parties would have to promptly correct material errors. The bill would except some arrangements from disclosure, including repayment of loan principal; repayment with interest not exceeding the higher of 10 percent or three times the annual average 30-year constant maturity Treasury yield for the year before the agreement; reimbursement of attorney fees paid to counsel of record; and reimbursement of a grant. Courts would not be required to produce lists of donors or members and must allow redactions of their identities unless those individuals also have a legal right to contingent payments and are not excepted.