Alex Dahl Argues for TPLF Transparency in WSJ Letter

LCJ General Counsel Alex Dahl highlights the issues caused by the lack of third-party litigation funding transparency and urges adoption of a unform federal TPLF disclosure rule in a letter to the editor published by the Wall Street Journal. The June 19th letter was published in response to an earlier Journal editorial highlighting problems arising from the lack of TPLF disclosure:

“You rightly note a significant problem with third-party litigation funding: the lack of transparency. Thankfully, the Advisory Committee on Civil Rules, which reviews and amends the procedural rules used in federal civil cases, is considering whether to write a rule requiring disclosure of such funding and thus end the secrecy of such arrangements.

Judges and parties to a case need to know who is controlling litigation and settlement decisions, whether there are conflicts of interest or disruptions to the legal process and whether parties are complying with procedural rules and court orders. Courts are currently responding to disclosure requests in inconsistent, ad hoc ways. A uniform rule requiring a standard disclosure process, similar to the well-accepted disclosure requirement for insurance contracts, would fix this problem and give courts and parties the information they need.”

The Advisory Committee on Civil Rules is now actively examining third-party litigation funding and has formed a subcommittee which is considering possible TPLF disclosure rules. Members of the Advisory Committee’s TPLF subcommittee met to discuss the issues arising from lack of transparency and the need for uniform disclosure rules at LCJ’s Spring Meeting. To learn more about the need for TPLF disclosure and how you can Ask About TPLF, visit LCJ’s dedicated website, www.AskAboutTPLF.com.