Bills › 89th General Assembly
Prohibiting litigation financing contracts
Topics:Courts & civil law
Where it is now
- Done: IntroducedJanuary 20, 2022
- Done: SubcommitteeJanuary 27, 2022
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Iowa would ban agreements where an outside company pays for a person's legal costs in exchange for a piece of their final settlement or court award. This rule does not stop lawyers from working for a percentage of the winnings or paying for costs on behalf of their clients. The change affects any new litigation financing contracts made after the law starts.1
Read the official explanation
This bill prohibits litigation financing contracts. Litigation financing contracts are agreements between a third party and a plaintiff, an attorney, or a law firm of a civil action in which the third party provides funding for legal expenses in exchange for a percentage of any settlement or judgment. The bill does not prohibit the provision of legal services on a contingency fee basis, or the advancement of legal costs, where such services or costs are provided on or on behalf of a consumer by an attorney representing the consumer in the dispute and in accordance with Iowa rules of professional conduct, a commercial tort claim, or a claim under Code chapter (workers’ compensation). The bill applies to litigation financing contracts entered into on or after the effective date of the bill.
Senate subcommittee
Named January 27, 2022. Meeting: Wednesday, February 9 · 10:30 AM · Room 217 Conference Room.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Family tree
89th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title.
Similar bills
- SF 53 Prohibiting litigation financing contracts, and including effective date and applicability…91st General Assembly · Subcommittee recommends passageNearly identical
- SF 338 Prohibiting litigation financing contracts, and including effective date and applicability…90th General Assembly · Approved by committeeNearly identical
Matched by wording or an identical title.