SF 338: Prohibiting litigation financing contracts, and including effective date and applicability provisions

What it does

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 for 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).

Senate subcommittee · named February 21, 2023

• Sen. Jeff Reichman (R) · jeff.reichman@legis.iowa.gov
• Sen. Nate Boulton (D)
• Sen. Rocky De Witt (R)

Lobbying · 1 for, 5 against

For: Iowa Motor Truck Association

Against: Alliance for Responsible Consumer Legal Funding; American Legal Finance Association; International Legal Finance Association; Iowa Academy of Trial Lawyers; Iowa Association for Justice

In plain words

1. February 20, 2023Filed in the Senate and sent to the Judiciary committee
2. February 21, 2023Senate subcommittee named: Reichman, Boulton and De Witt
3. February 27, 2023Subcommittee recommended passing it with changes
4. March 6, 2023Approved by the Senate committee
5. June 5, 2023Sent to the Senate Judiciary committee