Litigation Funding Gets New Limits in New York

Summary

This episode discusses the newly enacted Consumer Litigation Funding Act in New York, which aims to regulate litigation funding practices. The law introduces a 25% cap on the recovery amount for funding companies and outlines various consumer protections, including clear contract disclosures and attorney responsibilities. The conversation explores the implications of this law on the litigation funding landscape, the economic impact on funding companies, and the overall benefits for consumers seeking legal funding.

See the bill at

Takeaways

The Consumer Litigation Funding Act aims to protect consumers in New York.

Litigation funding helps individuals pursue legal claims they cannot afford.

The law sets a 25% cap on funding companies' recovery from lawsuits.

Contracts must be clear, filled out, and include a 10-day cancellation period.

Attorneys must acknowledge and review funding contracts for consumer protection.

Litigation funding companies cannot influence legal strategy or settlement decisions.

The law requires funding companies to register and post a bond to operate in New York.

Initial reactions to the law are positive among consumer protection advocates.

The law does not apply to commercial litigation funding transactions with businesses.

The act aims to improve transparency and understanding for consumers.

Chapters

Keywords

Consumer Litigation Funding, New York Law, Litigation Funding Act, Legal Protections, Attorney Responsibilities, Economic Impact, Consumer Rights, Legal Funding, Civil Litigation, Legal Industry