Washington committee hears competing views on bill to require disclosure of third‑party litigation funders

Summary

Supporters said HB 2,255 would increase transparency and help judges manage complex litigation; opponents warned disclosure could expose attorney work product and chill access to capital for plaintiffs. The bill would require funder identity and unredacted agreements and cap funder recoveries at 25%.

A state legislative committee heard nearly three hours of testimony January 21 on House Bill 2,255, a proposal to require disclosure of third‑party litigation funding and to place limits on certain funder practices.

The bill, explained by committee staff, would create a new statutory chapter governing litigation‑financing agreements governed by Washington law. It would require claimants to disclose the name, address and citizenship or country of incorporation of any entity with a financial stake in a lawsuit and to produce unredacted copies of the financing agreement. The proposal also lists prohibited funder conduct, including directing attorney strategy or sharing proprietary or national‑security information, and it would void agreements that fail to comply. HB 2,255 would authorize statutory damages of $10,000 per violation…

Washington committee hears competing views on bill to require disclosure of third‑party litigation funders

Summary

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