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