Litigation Funding Disclosure Can Reduce Costs

In June 2017, the U.S. Chamber of Commerce petitioned the Federal Rules of Civil Procedure to require disclosure of outside funding in all cases. Mark Behrens, chairman of IADC’s civil justice response committee, talked how litigation financing disclosures could help reduce discovery costs for defendants.
According to Behrens, the lawyer groups, including IADC (International Association of Defense Counsel), are interested in disclosure to preserve the integrity of the civil justice system. At present, as stated in the rules, the discovery must be proportional to the needs of the case. Also in the rules, judges can impose cost shifting on plaintiff requests that go beyond what is proportional in the case.
The U.S. Supreme Court in several recent decisions has made it harder for plaintiffs to sue corporations in certain jurisdictions. It has happened as there are jurisdictions where when the plaintiffs sue there, the defendants tend to believe that the law is not going to be applied fairly in their case.

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Summarized by Natalia Tsar.

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