NJ S2357

Parties in civil or administrative actions must disclose third-party litigation funding agreements to all other parties at the time of initial pleading or when the agreement is made, without waiting for a discovery request.

Litigation funders owe a fiduciary duty to the funded party and are jointly liable for any costs or monetary sanctions imposed against the party or their attorney arising from the funded action.

Funders are prohibited from influencing litigation decisions, providing legal advice, selecting attorneys, or attempting to secure or waive specific remedies for the funded party.

Litigation funders cannot receive more than 25% of any settlement, judgment, or monetary relief, and combined funder payments plus attorney fees cannot exceed 50% without the party's express consent.

Violations render funding agreements unenforceable, constitute violations of New Jersey's consumer fraud act, and may result in court-imposed sanctions; the law takes effect 90 days after enactment and excludes pre-settlement funding for personal living expenses.