CIVIL/PROCEDURE: Provides relative to disclosure of financing agreements

HLS 26RS-950 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 240
BY REPRESENTATIVE CHENEVERT
CIVIL/PROCEDURE: Provides relative to disclosure of financing agreements
1 AN ACT
2 To amend and reenact R.S. 9:3580.13(B) and (C) and to enact R.S. 9:3580.13(D) and (E),
3 relative to third-party litigation financing; to provide relative to the funds recoverable
4 by litigation financiers; to provide relative to disclosure of litigation financing
5 contracts or agreements; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 9:3580.13(B) and (C) are hereby amended and reenacted and R.S.
8 9:3580.13 (D) and (E) are hereby enacted to read as follows:
9 §3580.13. Disclosure of financing agreements; discovery
10 * * *
11 B. A litigation financer with a litigation financing contract or agreement
12 shall not receive or recover, whether directly or indirectly, any amount greater than
13 an amount equal to the share of the proceeds collectively recovered by the plaintiffs
14 or claimants in a civil action, administrative proceeding, legal claim, or other legal
15 proceeding seeking to recover monetary damages financed by a litigation financing
16 contract or agreement after the payment of any attorney fees and costs owed in
17 connection to such action, claim, or proceedings.
18 B. C. The existence of a litigation financing contract or agreement is subject
19 to discovery in accordance with the Code of Civil Procedure and Code of Evidence
20 in all civil actions.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-950 ORIGINAL
HB NO. 240
1 D. An attorney who enters into a litigation financing contract or agreement
2 shall disclose the existence of the contract or agreement and deliver a copy of the
3 contract or agreement to the client he represents in the civil action, administrative
4 proceeding, claim, or other legal proceeding financed by the agreement within thirty
5 days after being retained as counsel by the client, or within thirty days after entering
6 into the litigation financing agreement, whichever is earlier.
7 C. E. This Chapter shall does not apply to nonprofit legal organizations
8 funded by private donors that represent clients on a pro bono basis. Awards of costs
9 or attorney fees to nonprofit legal organizations shall not be affected by this Chapter.
10 This Chapter shall not be interpreted to require a nonprofit legal organization to
11 disclose its donors or sources of funding.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 240 Draft 2026 Regular Session Chenevert
Abstract: Provides a limitation of recovery under third-party litigation financing
agreements, and provides for disclosure of such agreements.
Proposed law prohibits a litigation financer with a litigation financing contract from
receiving any amount greater than an amount equal to the share of the proceeds collectively
recovered by the plaintiffs seeking to recover monetary damages financed by a litigation
financing contract or agreement after the payment of any attorney fees and costs.
Proposed law requires an attorney who enters into a litigation financing contract or
agreement to disclose the existence of the contract or agreement and deliver a copy to the
client he represents within 30 days after being retained as counsel by the client, or within 30
days after entering into the litigation financing agreement, whichever is earlier.
(Amends R.S. 9:3580.13(B) and (C); Adds R.S. 9:3580.13(D) and (E))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.