HB105
Revise non-recourse litigation funding agreement regulations
Summary
The bill enacts regulations for non-recourse litigation funding agreements in Ohio, defining terms, outlining requirements for agreements, and prohibiting certain practices by funding companies. It mandates clear communication of terms to consumers, allows for cancellation of agreements within ten days, and establishes penalties for violations. The bill also restricts agreements with foreign entities and ensures consumer rights are protected in the context of litigation funding.
Rationale
The bill introduces regulatory oversight on litigation funding, which may conflict with the LP's emphasis on minimal government intervention in contracts and economic activities. However, it includes consumer protections that align with some LPO principles, leading to a mixed alignment score for both parties.
Risks and Concerns
- Increased government regulation may stifle market competition.
- Potential for unintended consequences in consumer access to funding.
- Regulatory complexity could lead to confusion among consumers and providers.