A bill for an act prohibiting litigation financing contracts, and including effective date and applicability provisions.

SF 53 prohibits third-party litigation financing contracts in Iowa, which are agreements where a funder provides legal case funding in exchange for a share of any settlement or judgment. The bill makes these contracts void and unenforceable for consumers, attorneys, or law firms in civil cases, but does not affect standard contingency fee arrangements where attorneys directly represent clients under Iowa professional rules. It takes immediate effect upon enactment and applies to all such contracts entered after that date. The bill specifically excludes contingency fees, legal cost advancements by attorneys, and certain commercial tort or workers' compensation claims from the prohibition.