While it may have slowed down in the Florida House, a Florida Senate panel this week approved an insurance industry-backed bill that cracks down on the $13.5 billion third-party litigation financing industry, Florida Politics reported.
State Sen Linda Stewart (D-Orlando) joined with the Republicans on the committee in a 15-5 vote to approve SB 1276.
The bill would create a new section of law called the Litigation Investment Safeguards and Transparency Act and requires lawyers who enter into third-party litigation agreements to disclose that information to their clients. They would also need to inform the court, opposing counsel and any known person, such as an insurer, with a preexisting contractual obligation to indemnify or defend a party to the action.
The reporting requirements apply to arrangements funded by domestic and international third-party financing companies.