Federal Rules Panel to Look at Third-Party Litigation Funding

The burgeoning phenomenon of third-party litigation funding will be getting some attention from a new subcommittee of the advisory body that helps develop rules for civil litigation in the federal court system.

The Advisory Committee on Civil Rules set up the new subcommittee on Nov. 7 in Washington during its fall meeting after discussing a proposed rule amendment that would require disclosure of third-party litigation funding arrangements in any civil action filed in federal court.

The committee discussed the proposal at some length but didn’t vote on it.

Later in the meeting it formed a new ...