YourVoice.Now Summary
Transparency & AccountabilityCivil LibertiesOutside investors backing a federal lawsuit would have to be named — and their contract handed to the judge and the other side.
Transparency & Accountability
A party or its lawyer would have to put in writing who outside the case stands to be paid based on the result. There is no general federal rule requiring that today, though a few courts have their own.
The written agreement, plus any side documents, would have to be turned over for the other parties to read and copy. A judge could order something different, or the parties could agree to it.
Civil Liberties
Whoever you are suing would see what you promised the investor and on what terms. The bill asks for no showing that the contract has anything to do with the case.
The rule would reach any civil case that is open the day the bill becomes law, not just new ones. Deals signed years earlier, when nothing had to be shared, would still have to be handed over.
More about this bill
If an outside investor is helping pay for your federal lawsuit, that deal would not stay between the two of you. You or your lawyer would have to name anyone whose payment depends on how the case turns out. You would also hand over the funding contract itself to the judge and to the other side. The rule would cover any civil case in federal court. The notice would be due within 10 days of signing the deal, or when the case is filed, whichever comes later. Plain loans are left out, as long as the interest stays low enough. The line is 7 percent, or twice the average 30-year Treasury rate, whichever is higher. Money paid back to your own lawyer is left out too. Cases already open in court would be covered as well. The bill sets no penalty for a party that does not comply.
Congressional Summary
Litigation Transparency Act of 2025 This bill generally requires parties in a civil action to disclose to the court and other named parties the identity of any person (other than counsel) that has a right to receive a payment or thing of value contingent upon the outcome of the civil action. The bill also requires parties to produce the agreement creating the contingent right to payment or a thing of value. These requirements apply to claims that are pending on or commenced after this bill's date of enactment.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-07
- Date Added
- 2026-09-10
- Source
- Congress.gov →
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