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New Local Rule Allows Disclosure of Litigation Funding in NJ’s Federal Courts

On July 23, 2021 by Schnader

Carl J. Schaerf and Gary N. Smith published an article in the New Jersey Law Journal, “New Local Rule Allows Disclosure of Litigation Funding in NJ’s Federal Courts.”

New local Rule 7.1.1 (effective Aug. 5, 2021), changes the landscape of litigation funding disclosure in New Jersey’s federal courts. The District of New Jersey will now require all parties to file statements setting forth information about any non-party person or entity that is “providing funding for some or all of the attorney fees and expenses for the litigation on a non-recourse basis” in exchange for either “a contingent financial interest based upon” the litigation’s results or a “non-monetary result that is not in the nature of a personal or bank loan, or insurance.” The new local federal rule seems intended to strike a balance, requiring a showing of good cause before chasing down records that might be compromising.

Click here to read the full article. Or download it here.