Relates to the disclosure of third-party consumer litigation financing agreements in which there is a right to receive compensation or proceeds from the consumer that is contingent on and sourced from any proceeds of the civil action, by settlement, judgment, or otherwise.

New York Assembly Bill A07599, introduced by Assemblymember Amanda Septimo, aims to increase transparency in civil lawsuits by requiring plaintiffs to disclose any agreements they have with third-party companies that provide funding for their legal cases. These agreements involve the funder receiving a portion of any financial recovery from the lawsuit, such as settlements or judgments. The bill mandates that such agreements be shared with all parties involved in the litigation, including insurers, without waiting for a discovery request. Additionally, it allows for the discovery of the existence and participants of these funding arrangements in personal injury cases and related matters.

Supporters of the bill argue that it promotes fairness and transparency in the legal process by ensuring all parties are aware of external financial interests that could influence litigation. They believe that disclosing third-party funding agreements will help prevent potential conflicts of interest and ensure that settlements and judgments are reached based on the merits of the case, rather than undisclosed financial arrangements.

Critics contend that the bill could discourage third-party funding, which often enables individuals without sufficient resources to pursue legitimate legal claims. They argue that mandatory disclosure of funding agreements might deter funders from investing in cases, potentially limiting access to justice for plaintiffs who rely on such financial support to afford legal representation and cover litigation costs.