Courts Panel Advances Stronger Financial Recusal Draft Rule (1)

A judicial advisory committee moved forward with draft changes to a federal courts rule that would require parties to tell judges of more possible financial conflicts in civil cases.

The Advisory Committee on Civil Rules on Tuesday unanimously advanced proposed changes to Rule 7.1 of the Federal Rules of Civil Procedure that would require parties in a case to disclose “grandparent” business entities, which have ownership in a party’s parent. The draft says such disclosure is required when another entity owns at least 10% of a party’s parent.

Judges with a financial stake in litigation are recused from hearing those ...