Northern District of California Rules Committee moves to expose third party litigation funding (TPLF)
01st Nov 2016
Litigation funders are pushing back against a proposed amendment to Civil Local Rule 3-15 introduced by judges in the Northern District of California in the United States, that would require attorneys to disclose when their case is backed by a third party investor reports The Recorder.
The rule comes as litigation finance firms have expanded their presence in the California Bay Area and amid growing controversy over the role of third party investment in the legal system. If adopted, the rule would be among the first for any federal court to specifically address litigation finance.
Lisa Rickard, President of the U.S. Chamber Institute for Legal Reform (ILR), is quoted in the article noting that the adoption of the Northern District’s proposal “would be a major step in the right direction.”