The Arizona Supreme Court’s pending amendment to Rule 8 of the Rules of Civil Procedure would require any party receiving third-party litigation funding to file a standardized certificate at the outset of a case—or within seven days if funding comes later. This move aims to illuminate the “hidden capital” behind lawsuit financing and equip all stakeholders with critical information from day one.
Rule Change at a Glance
- When & What: A certificate disclosing funder identity, formation, financial stake, approval rights and whether funding covers one case or a portfolio must accompany the complaint (or be filed within seven days of funding).
- Judicial Safeguards: Courts may conduct an in-camera review and order limited disclosure only for good cause, protecting privileged strategy materials.
MPL Association Endorsement
The Medical Professional Liability Association filed formal comments in support, highlighting that full visibility into third-party backers “is directly relevant to the litigation/settlement process and vital to ensure an efficient resolution.” By exposing outside incentives, the rule change promises smoother negotiations and fewer surprise tactics at mediation.
GET THE SUMMIT
Sign up for news and stuff all about the stuff you wanna know about in your sector twice a month.
