Fighting for Transparency in Third-Party Litigation Funding

The Texas Supreme Court Advisory Committee is examining possible rules to address third- party litigation funding (TPLF) transparency in Texas state courts. This is potentially an important development for reform, and ILR, Lawyers for Civil Justice (LCJ), and the Texas Civil Justice League (TCJL) have submitted a letter to the Committee, urging it to take a much-needed step toward enhancing transparency in TPLF in Texas.

This letter advocates for mandatory transparency of TPLF agreements in Texas state courts, aiming to prevent undue influence by funders and ensure that litigation decisions are made by the parties. The decision of the Texas Supreme Court to examine possible TPLF rules underscores the growing concerns about the secrecy surrounding it and its potential risks, including foreign manipulation of the civil justice system. Here are some key takeaways from the letter:

• Highlighting judicial concerns: The letter highlights how judges and courts increasingly require TPLF transparency to understand the full scope of outside influence on litigation.
• Flagging recent state reforms: States like Indiana, Louisiana, and West Virginia have enacted laws mandating TPLF transparency, setting a precedent for other states to follow.
• Outlining risks of foreign manipulation: The letter details instances where foreign entities, including those linked to adversarial governments, have used TPLF to potentially manipulate U.S. litigation for strategic gains.

By championing TPLF transparency, ILR, LCJ, and TCJL are working to create a more balanced legal system. Reforming TPLF is crucial for maintaining the integrity of the legal system and ensuring that our courts are used to pursue justice rather than simply as an investment opportunity.

ILR is leading the charge on TPLF transparency, advocating for reforms that will protect the legal system from undue influence and ensure that all parties involved in litigation are aware of who is funding and potentially controlling the case. For more information, check out ILR's TPLF issues page.