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Assembly Bill A7599

2025-2026 Legislative Session

Relates to the disclosure of third-party consumer litigation financing agreements

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Current Bill Status - In Assembly Committee

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2025-A7599 (ACTIVE) - Details

Current Committee:
Assembly Judiciary
Law Section:
Civil Practice Law and Rules
Laws Affected:
Add R3120-a, CPLR

2025-A7599 (ACTIVE) - Summary

Relates to the disclosure of third-party consumer litigation financing agreements in which there is a right to receive compensation or proceeds from the consumer that is contingent on and sourced from any proceeds of the civil action, by settlement, judgment, or otherwise.

2025-A7599 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7599
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 1, 2025
                                ___________
 
 Introduced  by M. of A. SEPTIMO -- read once and referred to the Commit-
   tee on Judiciary
 
 AN ACT to amend the  civil  practice  law  and  rules,  in  relation  to
   disclosing third-party consumer litigation financing agreements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "sunshine in lawsuit funding act".
   §  2. The civil practice law and rules is amended by adding a new rule
 3120-a to read as follows:
   RULE 3120-A. DISCLOSURE OF FINANCING AGREEMENTS; DISCOVERY.  1. EXCEPT
 AS OTHERWISE STIPULATED OR ORDERED BY THE COURT,  A  CONSUMER  OR  THEIR
 LEGAL  REPRESENTATIVE  SHALL,  WITHOUT  AWAITING  A  DISCOVERY  REQUEST,
 PROVIDE TO ALL PARTIES TO THE LITIGATION,  INCLUDING  THEIR  INSURER  IF
 PRIOR  TO LITIGATION, ANY LITIGATION FUNDING CONTRACT OR AGREEMENT UNDER
 WHICH ANYONE, OTHER THAN A LEGAL REPRESENTATIVE PERMITTED  TO  CHARGE  A
 CONTINGENT FEE REPRESENTING A PARTY, HAS A RIGHT TO RECEIVE COMPENSATION
 OR  PROCEEDS  FROM  THE CONSUMER THAT ARE CONTINGENT ON AND SOURCED FROM
 ANY PROCEEDS OF THE CIVIL ACTION, BY SETTLEMENT, JUDGMENT, OR OTHERWISE.
   2. THE EXISTENCE OF LITIGATION FUNDING AND ALL  PARTICIPANTS  IN  SUCH
 ARRANGEMENTS ARE PERMISSIBLE SUBJECTS OF DISCOVERY IN ALL PERSONAL INJU-
 RY  LITIGATION  AND  MATTERS  ARISING OUT OF PERSONAL INJURIES INCLUDING
 ACTIONS FOR WRONGFUL DEATH AND PERSONAL INJURY ACTIONS INVOLVING INFANTS
 OR JUDICIALLY DECLARED INCAPACITATED PERSONS.
   § 3. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11245-01-5

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