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MO HB3205

Bill

Status

Engrossed

3/11/2026

Primary Sponsor

David Casteel

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Prohibits foreign principals (countries of concern under federal law or designated terrorist organizations) and their agents from engaging in litigation funding or investing in litigation funders operating in Missouri

  • Defines "litigation funder" as any person or entity entering a litigation funding agreement with rights to receive compensation from case proceeds, excluding family members, the party's own attorney, traditional lenders, and pro bono nonprofits

  • Imposes a fiduciary duty on litigation funders toward funded parties and makes funders jointly liable for any costs or monetary sanctions assessed against the funded party or their attorney

  • Classifies violations of the foreign funding prohibition as a Class E felony and an unlawful practice under Missouri's Merchandising Practices Act, with the attorney general authorized to bar violators from funding litigation in the state

  • Renders any litigation funding agreement entered in violation of the foreign principal restrictions void and unenforceable

Legislative Description

Establishes provisions relating to the funding of legal actions, including foreign funding and litigation funding agreements

Last Action

Reported to the Senate and First Read (S)

3/11/2026

Committee Referrals

Fiscal Review3/10/2026
Rules - Legislative2/26/2026
Legislative Review2/12/2026

Full Bill Text

No bill text available