Bills › 90th General Assembly
Prohibiting litigation financing contracts, and including effective date and applicability provisions
Topics:Courts & civil law
Where it is now
- Done: IntroducedFebruary 20, 2023
- Done: SubcommitteeFebruary 21, 2023
- Done: Senate committeeMarch 6, 2023
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2024 session adjourned on April 19, 2024, 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 someone'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 a client's costs as part of their normal legal services. The change applies to any new 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 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). The bill takes effect upon enactment and applies to litigation financing contracts entered into on or after the effective date of the bill.
Senate subcommittee
Named February 21, 2023. On February 27, 2023 it recommended amendment and passage. [].
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
Tried before
90th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- SF 2085 Prohibiting litigation financing contracts89th General Assembly · In committee · nearly identicalCleared committee
Similar bills this General Assembly
- SF 53 Prohibiting litigation financing contracts, and including effective date and applicability…91st General Assembly · Subcommittee recommends passageNearly identical
Matched by wording or an identical title.