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Minutes for SB152 - Committee on Judiciary
Short Title
Providing for joint liability for costs and sanctions in third-party funded litigation, requiring certain discovery disclosures and requiring payment of certain costs for nonparty subpoenas.
Minutes Content for Mon, Feb 14, 2022
Chairperson Warren opened the hearing on SB152.
Jason Thompson, Senior Assistant Revisor, provided an overview of SB152 and responded to questions from Committee members. (Attachment 1)
Eric Stafford testified in support of SB152, stating hedge funds investing in litigation for a return on that investment is a growing trend and the bill would require disclosure of any third party to the case or costs associated with lawsuits. (Attachment 2)
Mark Behrens testified in support of SB152, stating third party litigation funding has the potential to distort the legal system, and advocates for courts to have a right to know when there are parties in a case that are not at the settlement table because of the financial influence. (Attachment 3)
Written only testimony in support of SB152 was submitted by Hilary Segura, Assistant Vice President and Counsel, American Property Casualty Insurance Association (Attachment 4)
Conferees responded to questions from Committee members.
Gary Barnett testified in opposition to SB152, stating the commercial legal finance industry is market-based and entirely different than consumer litigation funding. Investors have no control over the outcome of litigation and do not get in the middle of the ethical obligations of lawyers and their clients. Contracting with a third party allows law firms of all types and sizes to mitigate risks and should be free to do so without being forced to disclose confidential financial arrangements; particularly to an adversary in litigation. (Attachment 5)
Andrew Cohen testified as an opponent to SB152, relating the process for Burford Capital, a commercial litigation finance company that engages in business-to-business litigation regardless and does not get involved in the control of litigation, whether that is on the plaintiff, defendant, or the law firm's side. (Attachment 6)
Conferees responded to questions from Committee members.
Written only opponent testimony to SB152 was submitted by:
- Callie Jill Denton, Executive Director, Kansas Trial Lawyers Association (Attachment 7)
- Joseph Molina, Director of Legislative Services, Kansas Bar Association (Attachment 8)
Chairperson Warren closed the hearing on SB152.
The meeting adjourned at 11:46 a.m.
The next meeting will be February 15, 2022.
