Third-Party Litigation Financing - Licensing and Regulation

HB 1298 establishes a regulatory framework for third-party litigation financing in Maryland. It requires litigation financiers to obtain a license under the state's consumer loan laws and defines "litigation financing" as money provided to consumers for civil cases where repayment depends on winning the case or receiving settlement/judgment proceeds. The bill mandates that parties in civil actions must proactively disclose any litigation financing contracts to opposing parties and insurers, with ongoing disclosure requirements for any changes. Additionally, it allows courts to consider the existence, participants, and terms of these contracts as discoverable evidence in any civil case involving litigation financing. This directly affects consumers seeking legal funding, attorneys working with financiers, and the financiers themselves.