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MontanaSB 51169th Legislature, Regular Session (2025)Senate

Generally revising laws related to litigation financing

Sponsored By: Greg Hertz (Republican)

Signed by Governor

Corporations

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Lawsuit funding capped and controlled

The law caps a financer’s take at 25% of any judgment or settlement and limits interest to the state rate cap. Financers cannot control your case, choose your lawyer or experts, or give legal advice. Financers cannot pay or take referral fees or assign or securitize contracts, and people who provide goods or services in your case cannot hold a financial interest in your funding or take referral fees. Financers also cannot report you to credit bureaus when the case proceeds are not enough to repay. You or your lawyer must give a copy of any financing contract to all parties, their lawyers, the court or agency, and any insurer, and disclose any new or changed contract within 30 days. Parties and their lawyers cannot share court‑protected or proprietary information with a financer, and a financer is jointly liable for court costs or money sanctions tied to a case it funded.

Who is covered by funding rules

The law explains who and what these rules cover. A “consumer” now includes anyone who is or may become a plaintiff, claimant, or complainant in a Montana case. A “legal claim” includes civil or administrative cases seeking money or court orders. “Litigation financing” covers outcome‑based funding or rights to be paid from case proceeds, and a written “litigation financing contract” must follow these rules. A “litigation financer” is a business that funds cases; it does not include a party, the party’s lawyer, or an insurer with a duty to defend. The law exempts charities that fund pro bono work, businesses that charge no interest and keep no share, and regulated lenders with no right to case proceeds. These rules apply to contracts signed on or after the law’s effective date.

Blocks foreign money in lawsuit funding

The law bans foreign adversaries and foreign persons of concern from financing Montana lawsuits or investing in lawsuit‑funding companies. It also bars any foreign person from providing, funding, investing in, or controlling litigation financers in Montana. Montana financers may not take money, investment, ownership, or control from those foreign groups. Parties cannot share proprietary claim information with foreign persons, foreign adversaries, or persons of concern. When foreign funding or ownership arises, a financer must tell the Secretary of State within 30 days and file the foreign party’s name, country, and copies of related contracts.

Sponsors & Cosponsors

Sponsor

  • Greg Hertz

    Republican • Senate

Cosponsors

  • Brandon Ler

    Republican • House

  • Courtenay Sprunger

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 238 • No: 60

House vote • 4/11/2025

Do Concur

Yes: 77 • No: 22

House vote • 4/11/2025

Do Concur

Yes: 84 • No: 16

Senate vote • 3/6/2025

Do Pass

Yes: 43 • No: 7

Senate vote • 3/6/2025

Do Pass

Yes: 34 • No: 15

Actions Timeline

  1. Chapter Number Assigned

    5/8/2025Senate

  2. Signed by Governor

    5/5/2025Senate

  3. Transmitted to Governor

    4/25/2025Senate

  4. Signed by Speaker

    4/25/2025House

  5. Signed by President

    4/21/2025Senate

  6. Returned from Enrolling

    4/14/2025Senate

  7. Sent to Enrolling

    4/11/2025Senate

  8. 3rd Reading

    4/11/2025House

  9. 2nd Reading

    4/11/2025House

  10. Committee Report

    3/29/2025House

  11. Committee Executive Action

    3/28/2025House

  12. Hearing

    3/17/2025House

  13. 1st Reading

    3/17/2025House

  14. Referred to Committee

    3/17/2025House

  15. Transmitted to House

    3/7/2025Senate

  16. 3rd Reading

    3/6/2025Senate

  17. 2nd Reading

    3/6/2025Senate

  18. Fiscal Note Printed

    3/5/2025Senate

  19. Committee Report

    3/4/2025Senate

  20. Fiscal Note Unsigned

    3/4/2025Senate

  21. Fiscal Note Received

    3/4/2025Senate

  22. Committee Executive Action

    3/4/2025Senate

  23. Hearing

    2/28/2025Senate

  24. Referred to Committee

    2/26/2025Senate

  25. 1st Reading

    2/26/2025Senate

Bill Text

  • Enrolled

    4/12/2025

    PDF

  • Introduced

    2/25/2025

    PDF

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