ANALYSIS: Litigation Finance Court Disclosure Remains a Risk

While litigation financing is becoming more common, and often remains confidential, its disclosure in court remains a risk. Parties obtaining third-party litigation funding rarely know for certain whether the court will require details of the funding arrangement to be disclosed.

The status quo of the case law has been generally stable: Disclosure is usually not compelled. Courts generally hold that financing agreements are not materially relevant to the issues in the case, and/or that information shared with a litigation finance company is protected by the work product doctrine, attorney-client privilege, or common interest privilege. But courts make disclosure determinations on ...